Português

Newsroom

Newsroom

22|02|2010 - 12h00Flex-fuel bikes and cars show robust Brazilian sales

Flex-fuel vehicle sales in Brazil reached 172,000 units in January 2010, 5% more than in January 2009.

By UNICA

Data released in the first week of February by the National Association of Vehicle Manufacturers (ANFAVEA) and compiled by the Brazilian Sugarcane Industry Association (UNICA) shows flex-fuel vehicle sales accounting for 90% of overall car sales in January, which totalled 190,000 units, the same total of a year ago.

"There's always a seasonal drop in sales during the months of January and February. However, looking at 2009 licensing numbers, the percentage of flex-fuel vehicle sales reinforces a good year for the sector," said UNICA's Technical Director, Antonio de Padua Rodrigues.

Lower federal taxes Licensing of light duty Otto Cycle vehicles (powered by gasoline, ethanol, or either in the case of flex vehicles) reached 2.874 million units in 2009, a 12.9% increase over total car sales in the previous year. Overall sales in January of 2010 were 5% higher than in the same month in 2009.

Flex-fuel car sales peaked in 2009 at 2.652 million units, or 92.3% of total vehicle sales for the year. A key factor behind the year's results is a considerable cut in the federal tax on industrialized products, known as the IPI tax in Brazil.

Tax cuts were adopted by the Brazilian government because of the global crisis, to keep the auto industry active and prevent job losses. The cuts end in March for flex-fuel vehicles and June for trucks.

Flex-fuel motorcycles

On the market for less than a year, flex-fuel motorcycles are already repeating the success of flex automobiles in Brazil. Although overall motorcycle sales were down in 2009, sales of flex-fuel models in the 150 cc category made by Honda reached 183 thousand units for the year, a total that's 70% higher than sales for conventional units in the same category.

"The total motorcycle fleet in Brazil is estimated at approximately 11 million units. In terms of fuel consumption, they are the equivalent of 3.5 million automobiles, or 37% of the total flex-fuel car fleet, which totals 9.4 million," said Luciano Rodrigues, UNICA's Economic Advisor.

Rodrigues concluded that flex-fuel motorcycles have earned a solid position among consumers, since they were launched to meet an existing market demand. "Hopefully the number of flex-fuel models offered by motorcycle manufacturers will increase, which will intensify this new driver for domestic ethanol demand."

Honda currently offers two flex-fuel models in Brazil: the CG 150 Titan Mix introduced in March and the NXR 150 Bros Mix, launched in September of 2009. Motorcycle sales data was distributed by the Brazilian Association of Motorcycle Manufacturers (Abraciclo) and compiled by the Brazilian Sugarcane Industry Association (UNICA).


Related News

Brazilian Bioethanol Science and Technology Laboratory (CTBE)

Integrate Brazilian Center of Research in Energy and Materials (CNPEM) – Campinas-SP
Phone: +55 (19) 3512-1010 | Fax: +55 (19) 3518-3104