UPDATE 1-Brazil auto sales slump 27.4 pct in January-source

* Brazil’s auto sales tumble in Jan from Dec

* 2009 Sales up 6.3 pct over previous year

* Official data slated for Tuesday
(Adds details, context, byline)

By Alberto Alerigi Jr.

SAO PAULO, Feb 1 (BestGrowthStock) – New automobile sales in Brazil
slumped 27.4 percent in January from a strong showing in
December and record sales in 2009, a source with access to the
data told Reuters on Monday.

Sales surged about 6.3 percent over the year-earlier
period, the source added, as government tax breaks for the
sector continued to buoy demand.

In January, 201,800 automobiles were sold, compared with
277,900 in December and 189,900 in January 2009.

Automakers benefited last year from government tax breaks
that helped boost demand when the economy was struggling.

But Finance Minister Guido Mantega has said the government
has no plans to renew the tax breaks, which expire at the end
of March. See [ID:nN29162223].

Still, Brazil’s automakers association Anfavea expects
sales to jump 8.2 percent in 2010 to 3.4 million vehicles,
including buses and trucks.

In December, automobile sales in Brazil had increased 16.41
percent from November, the nation’s automobile dealers
association known as Fenabrave said last month.

Brazil is a major market for global automakers such as
Italy’s Fiat SpA (FIA.MI: ), Germany’s Volkswagen AG (VOWG.DE: ),
and U.S.-based General Motors Co [GM.UL] and Ford Motor Co
(F.N: ).

Stock Market Report

(Reporting by Alberto Alerigi Jr.; Writing by Ana Nicolaci da
Costa)

UPDATE 1-Brazil auto sales slump 27.4 pct in January-source