Brazil auto sales up 5.4 pct in May-Anfavea

SAO PAULO, June 4 (Reuters) - Automobile sales in Brazil rose 5.4 percent in May from April, rebounding after a sharp decline the previous month, the national automakers' association Anfavea said on Thursday.

Sales increased 2.1 percent from May 2008, to 247,000 units, Anfavea said. Automobile output rose 6.7 percent month on month in May, but dropped 7.7 percent from a year earlier to 270,200 units.

Brazil, Latin America's largest economy, is a major market for global automakers such as Italy's Fiat (FIA.MI: Quote, Profile, Research), Germany's Volkswagen AG (VOWG.DE: Quote, Profile, Research), U.S.-based General Motors Corp GMGMQ.PK and Ford Motor Co (F.N: Quote, Profile, Research).

Asian and French manufacturers are also increasingly relying on Brazil to offset slumping sales at home.

The national dealers' association, Fenabrave, said this week that new car, truck and bus sales in Brazil grew 5.4 percent in May from April. (Reporting by Alberto Alerigi, Writing by Elzio Barreto, Editing by Maureen Bavdek)