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Credit powers Brazil's auto industry

Overview

Brazil's automobile output has reached record levels this year due to increased sales on the local market powered by improved financial arrangements. Loan maturities have lengthened while interest charges have dropped strongly. The market has room to grow, with ownership at roughly one car for every 8.2 inhabitants.

It remains very protected, with import tariffs of 35 per cent. Limited foreign competition means that prices remain high. This has prompted nearly all the major...

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