Brazil sold a record high of 3.8 million vehicles in 2012, up 4.6 percent from 2011, the National Motor Vehicle Producers Federation (Fenabrave) said on Thursday.
The sales of cars and light vehicles accounted for a lion's share with 3.6 million units, up 6.1 percent from 2011.
It was the sixth consecutive year that Brazil had registered annual record-high car sales. Volkswagen Gol marked 26 consecutive years as best-selling vehicle model, with 293,293 units in 2012, according to Fenabrave.
However, 167,438 units of trucks and 29,716 units of buses were sold in 2012, down 19 percent and 14.9 percent respectively from the previous year.
Fenabrave attributed the strong sales to the government's stimulus measures, including tax cuts and greater access to credit.
Brazil boasts the world's fourth largest car market after the United States, China and Japan.