UPDATE 1-Brazil auto sales sink 9.54 pct in August -dealers

* Sales slump 9.54 pct from July, but rise from Aug 2008

* January-August sales rise 3.9 pct from year earlier
(Recasts, adds year-to-date figures, tax breaks)

SAO PAULO, Sept 1 (Reuters) - New automobile sales in
Brazil sank in August from July, the second straight
month-on-month decline after reaching a record high in June,
the national dealers' association Fenabrave said on Tuesday.

Sales of new cars and trucks tumbled 9.54 percent in August
from July to 247,525 units, but were up 7.12 percent from
August 2008, Fenabrave said. Year-to-date car sales grew 3.94
percent from the same period of of 2008 to 1.915 million
units.

Brazil's automobile market has been one of the strongest in
the world the past months as government tax incentives helped
lower car prices and lured consumers to showrooms.

In late June, the government extended tax breaks on
purchases of new vehicles until the end of the year, putting
consumers in less of a hurry to benefit from the cheaper
prices.

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).
(Reporting by Cesar Bianconi, Writing by Elzio Barreto,
editing by Matthew Lewis)