General Motors Corp. (GM) and Ford Motor Co. (F) sold fewer cars and trucks in Brazil in February, while competitors saw their sales increase from the previous month.

General Motors sold 35,757 cars and trucks last month compared with 38,201 in January, while Ford sold 22,461 cars and trucks in February, down slightly from 22,561 units in January.

Overall, Brazil vehicle sales for major auto makers rose 1% to 199,366 units last month.

Volkswagen (VLKAY) sold 46,740 cars and trucks in February, up from 41,134 in January, while Fiat (FIAZY) sold 44,980 cars and trucks, up from 43,312 in January.

Volkswagen, Fiat and GM are Brazil's Big Three auto makers.

Car sales in Brazil have been on the rise, including for GM and Ford, since December thanks to a government tax break for auto makers. The tax break ends on March 31, however, and sales could start to decline for GM's European rivals.

"The government has been very clear in telling us that the tax reduction goes until March 31 and any talk about extending that is to be working under a purely speculative hypothesis," said Jackson Schneider, president of Brazil's National Motor Vehicles Manufacturers Association, or Anfavea.

"These measures helped us sell between 15% and 20% more than we would have without the tax reduction," Schneider said.

Car sales collapsed in October when the credit crisis hit Brazil.

The market has been a general bright spot for both GM and Ford over the years. While car sales have been declining for their Detroit auto plants, car sales have been rising year over year for both U.S. auto makers in Brazil.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com