New car registrations in Brazil rose 19 percent from a year earlier to about 340,300 vehicles, an industry source with access to sales data said.
Daily sales volumes averaged around 17,000 vehicles in June, according to Thomson Reuters calculations, the strongest pace since November.
The government has responded with repeated rounds of tax incentives and trade protection for local auto factories, along with lower interest rates to bolster demand, which has shown few signs of a sustained recovery this year.
In May, new car registrations fell almost 10 per cent compared with a year earlier, as defaults on car loans and a scarcity of credit weighed on the sector, according to figures from the Fenabrave car dealership association.
Fiat was once again the market leader, but by a very narrow margin. Fiat sold 45,865 vehicles in May, followed by General Motors Co. (GM), which sold 45,826.