São Paulo, February 6, 2004 (Agência Brasil - ABr) - Vehicle sales registered a substantial decline in January. According to the National Association of Vehicle Manufacturers (Anfavea), sales dropped 36.4% in comparison with December, 2003. 107,425 vehicles were sold last month, as against 168,873 in December.

The drop in sales amounted to 4.4% in comparison with January, 2003. Despite lower sales, the automobile industry produced 157,260 vehicles, 2.1% more than in December. Truck production increased 15% in January, to 6,400 units.

Anfavea president Ricardo Carvalho said that vehicle prices should rise 3% with the end of the industry-government agreement that permitted a reduction in the Industrial Products Tax (IPI). The agreement expires at the end of February. (DAS)