SAO PAULO, Brazil, Aug 7 - Brazilian automobile sales rose 11.7 percent in July from June and surged 19.5 percent from the same month a year former, as falling borrowing costs made it cheaper for people to buy cars, the national automakers' association said on Monday.

Sales raised to 165,800 in July, contrasted with 148,400 in June and 138,700 in July 2005, the association, known as Anfavea, said.

Automobile production fell 1.1 percent in July to 222,400 compared with 224,900 the preceding month, but rose from the 211,900 in July 2005, the association said.

Brazil's central bank has cut its standard Selic rate at each of its nine meetings since September, slashing it by 5 percentage points to a 20-year low of 14.75 percent, dipping the cost of bank loans.