Brazil's Shrinking Motor Vehicle Sales

Flex-fuel vehicles that can burn 100% ethanol now make up more than 90% of new vehicle sales in Brazil. Therefore, the fleet consumes more ethanol each year. A period of economic prosperity in Brazil led to a proportional increase in vehicle sales. Then, beginning in 2012, sharp declines in business activity were accompanied by declining motor vehicle sales. The resulting lower ethanol demand will add to the troubles of the struggling sugarcane industry.