Chile January New Car,Light Truck Sales Jump 96.8% On Year-Group

(chinatrucks.com, Mar.03, 2010)January sales of new cars and light trucks in Chile surged 96.8% from a year earlier to 19,658 units, the fourth consecutive month of increased sales, the country&apos's automotive association said Monday.

The association, known by its Spanish acronym Anac, said sales jumped to levels seen before the international financial crisis that saw the country's economy sink into a recession.

Chile's gross domestic product contracted the first three quarters of the year but is expected to grow around 2% year-on-year in the final quarter. The country's monthly economic-activity index grew in November and December, the index's only forays into positive territory last year.

The spike in sales points to Chile's economic turnaround, Anac said in its statement.

Sales of SUVs skyrocketed 144% to 4,165 units, sales of passenger cars grew 106% to 11,495 units and sales of commercial vehicles grew 48% to 3,998 units, all in January year-over-year.

For 2010, Anac expects sales to continue growing, surpassing 210,000 units.

Anac is optimistic that sales this year will grow on increasing consumer confidence, expectations of an economic recovery and indications the central bank will maintain low interest rates during the first months of the year.

The monetary authority slashed the benchmark interest rate a total 775 basis points last year to a record low 0.5%, which has brought lending rates down. It has reiterated that it likely won't begin to slowly increase the key rate until well into the second quarter of 2010.

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