Brazil produced 1.55 million motor vehicles in the first six months of the year, a fall of 9.4 percent from the same period in 2011, the Anfavea industry association said Thursday.
Vehicle sales fell 1.2 percent compared with last year, to 1.71 million units.
The figures for output and sales could have been even worse if the Brazilian government had not introduced in May a package of tax cuts and credit-easing measures aimed at stimulating the economy, Anfavea said.
Vehicle exports declined 12.2 percent by volume compared with the first half of 2011, to 223,154 units, though they increased by 4.3 percent in value to $6.3 billion.
The Brazilian auto sector turned out 280,768 vehicles in June, down 7.6 percent from the same month in 2011, while sales climbed by 22.9 percent to 352,000 units.
Brazil is the world's fifth-leading producer of cars and trucks.