In the last six months, Brazil’s automotive industry had its worst performance since 2010, local media reported.
According to the nation’s automaker association Anfavea, car sales decreased 7.6 percent in the first half of 2014, year-over-year.
Stocks of autos are high and by the end of May automakers had about 400,000 cars stopped at their parking lots, waiting for sale.
As a way to prevent stronger losses to the nation’s automotive industry, Brazil’s minister of finance, Guido Mantega, announced earlier this week it would maintain the IPI tax at zero. By doing this, consumers could buy cars at better prices and automakers could boost sales.