Credit-Fuelled Autos Growth is Unsustainable

BMI has slightly revised down its Brazil vehicle sales forecast for 2010 and for the remainder of the now extended forecast period from 2011 to 2015. While the month-on-month (m-o-m) fall in sales in September has prompted us to limit our expectations of sales growth to just under 9% year-on-year (y-o-y), to 3.42mn units, by the end of 2010, the fear that the current rate of credit growth is unsustainable gives us reason to lower our average sales growth forecast to 8.5% y-o-y for 2011 to 2015. Nevertheless, we expect the new vehicle market to reach close to 5.13mn

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