* Continued tax breaks fail to sustain October rebound
* November sales 11 pct lower than November 2011
RIO DE JANEIRO Dec 3 Brazilian auto sales fell
9 percent in November as continued tax breaks failed to sustain
an October rebound in Latin America's largest vehicle market.
The country's association of car dealers, known as
Fenabrave, said a total of 451,613 cars, light commercial
vehicles, buses and trucks were registered during the month,
compared with 496,568 a month earlier.
The November figure represents a nearly 11 percent fall in
sales from November 2011 and a cumulative 11-month drop of 1.5
percent from the comparable period a year earlier.
The car industry, accounting for more than a fifth of the
Brazil's manufacturing output, is struggling with high costs and
sluggish demand as the country's economy limps along after more
than a year of stagnation. Last week, the government said
Brazil's economy grew by just 0.6 percent in the third quarter,
less than half what economists had expected.
To help spur sales, the government earlier this year
introduced tax breaks on automobiles, which reduced the price of
Brazilian-made vehicles by about 7 percent. Despite the
stimulus, including a brief jump in sales in October, the
incentives have proven insufficient for a full recovery.
(Reporting by Paulo Prada; Editing by Dan Grebler)