Brazil auto sales dip 11.3 pct in January vs Dec

SAO PAULO, Feb 11 (Reuters) - Vehicle sales in Brazil fell in January in line with seasonal trends but flex-fuel vehicles increased their share of the total market, Brazil's automobile manufacturers' association Anfavea said on Monday.

Sales of new cars fell 11.3 percent in January from December to 215,000 but jumped 40.6 percent in comparison to January of 2007.

Production increased 15.5 percent over the previous month and 24.2 percent from a year ago to 254,900 units.

December is traditionally a big month for buying cars in Brazil while sales drop in January as many people travel and take vacation.

Sales of flex-fuel cars -- which run on a blend of gasoline and ethanol made from sugar cane -- fell to 179,731 units in January against 200,686 units in December. But they were still up from January of 2007, when sales reached 120,199 units.

The share of flex-fuel vehicles among total auto sales reached 87.5 percent against 86.8 percent in December and 82.7 percent in January 2007.

On an annual basis, Brazilians are buying more cars because of falling interest rates, longer repayment periods and increased disposable income among consumers, especially those in the lower income brackets. The sector ended 2007 with sales soaring nearly 28 percent.

The Brazilian car market is dominated by world automakers including Italy's Fiat FIAT.MI, Germany's Volkswagen AG (VOWG.DE), U.S.-based General Motors Corp (GM.N) and Ford Motor Co (F.N), followed by Japanese and French producers. (Reporting by Vanessa Steltzer; Writing by Angus MacSwan; Editing by Reese Ewing and Walker Simon)