Brazilian Flex Fuel Car Sales Surge in 2004

A significant increase in demand for flex-fuel cars, which can run on ethanol, gasoline, or a combination of both, has been observed in Brazil. According to data released by the National Vehicle Manufacturers Association (Anfavea), sales of flex-fuel cars reached 328,374 in 2004, a staggering 582% increase from the previous year. This growth is attributed to the higher price of gasoline compared to ethanol, with ethanol prices being approximately 50% cheaper. As a result, flex-fuel cars now represent 22.9% of all new car sales in Brazil, up from 4% in 2003.

Key Takeaways:

Sales of flex-fuel cars in Brazil increased by 582% in 2004 to 328,374, according to Anfavea.
Flex-fuel car sales represented 22.9% of all new car sales in 2004, up from 4% in 2003.
Sales of cars that run exclusively on ethanol increased in 2004 to 50,954, up from 36,380 in 2003.
Renault, the French auto manufacturer, began producing flex-fuel cars in Brazil in October 2004, making it the fifth producer to do so.
Citroen plans to launch a flex-fuel model in Brazil early in 2005.
Monthly ethanol sales in Brazil reached 1.1 billion liters in November 2004, up from 950 million liters in March 2004.

Statistics:

328,374: Number of flex-fuel cars sold in Brazil in 2004.
582%: Increase in flex-fuel car sales in 2004 compared to the previous year.
22.9%: Percentage of flex-fuel cars in total new car sales in 2004.
50,954: Number of cars sold exclusively on ethanol in 2004.
36,380: Number of cars sold exclusively on ethanol in 2003.
1.1 billion liters: Monthly ethanol sales in Brazil in November 2004.
950 million liters: Monthly ethanol sales in Brazil in March 2004.
1.20 Brazilian reals: Price of ethanol per liter in Brazil.
BRL2.70: Exchange rate for one U.S. dollar in terms of Brazilian real.

Sources:

National Vehicle Manufacturers Association (Anfavea)
Dow Jones Newswires
Unica, Sao Paulo's sugar and ethanol industry association