UPDATE 2-Brazil car sales may grow 10 pct in 2010 - dealers

* Dealers see 8 pct sales growth in 2009 yr/yr

* Auto sales drop 5.2 pct in October from September

* Registrations for new cars rose 25.2 pct from Oct. 2008 (Recasts with details, quotes, forecasts)

SAO PAULO, Nov 4 (Reuters) - Car sales in Brazil could rise by 9 to 10 percent in 2010 from this year should forecasts for robust economic growth prove right, automobile dealers' association Fenabrave said on Wednesday.

Fenabrave also revised upward its forecast for sales this year, to an increase of 8 percent from 4 percent previously. If confirmed, registrations for new vehicles would reach a record 2.89 million units in 2009.

"The expectation for 2010 is based on Brazil's growth perspective," said Sergio Reze, president of the Fenabrave.

He said that economic growth forecasts of 5 percent next year for Brazil would make a 9 percent increase in car sales possible, even if prices rose a little.

In October, automobile sales in Brazil dropped 5.2 percent from the previous month, to 281,306 units, but were up 25.1 percent from a year earlier.

Brazil's automobile market has been one of the strongest in the world in recent months as government tax incentives have helped reduce car prices and lure consumers to showrooms.

In late June, the government extended breaks on the so-called IPI tax on industrial goods for six months for trucks and for three months for passenger cars and motorcycles. The tax breaks will gradually expire through the end of 2009.

Brazil, Latin America's largest economy, is a major market for 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 Rodolfo Barbosa; Writing by Inae Riveras, Editing by Gerald E. McCormick)