Chinese electric vehicle manufacturer BYD has taken a significant step in its global expansion by opening its largest factory outside of Asia, located in Camacari, Bahia, Brazil.
This project, which involves a investment of almost 900 million eurossymbolizes China’s growing industrial presence in South America and represents a milestone in the region’s automotive industry.
The opening ceremony, which took place this Thursday, October 9, was attended by the Brazilian president, Luiz Inácio Lula da Silva, who highlighted the importance of investment for the sustainable future of transport in Brazil.
“We are here not just to build cars, but to build the future – a future that belongs to every Brazilian who chooses cleaner transportation,” declared Wang Chuanfu, founder and president of BYD.
With an initial production capacity of 150 thousand vehicles per year, the factory has the potential to double this capacity in the next phase, reaching 300 thousand units annually.
The project expected to create more than 20 thousand direct and indirect jobscontributing significantly to the local economy.
The first models to be produced include the Song Pro hybrid SUV, the compact electric Dolphin Mini and a hybrid sedan, as well as a special edition of the Song Pro with a flex hybrid engine, adapted for the Brazilian ethanol market.
Since its entry into the Brazilian market in 2022, BYD has sold more than 170,000 electrified vehiclesbecoming the leader in the electric and hybrid vehicle segment, with a market share of 74.4%.
However, BYD’s rapid growth has not been without controversy. THE Brazilian association of vehicle manufacturers, Anfavea, accused the company of “dumping”citing sales prices lower than production costs, and criticized the temporary exemption from tariffs for vehicles partially manufactured in Brazil. The Brazilian government granted a six-month exemption worth approximately 400 million euros, but plans to increase tariffs on imports from 2027.
BYD responded to the accusations, stating that prices in Brazil are higher than in China and that local production involves high operating costs. The company also defended the need for tax differentiation to encourage industrial investment in the country.
Furthermore, the new unit faced criticism over working conditions, with the Public Ministry of Labor temporarily suspending work last year due to cases of labor exploitation. BYD stated that it complies with the authorities and reaffirmed its commitment to human and labor rights.
BYD’s investment aligns with the Brazilian Government’s industrial and environmental goals, which aim to increase local production of components to 70% by 2028 and establish research and testing centers in Brazil.
During the ceremony, Lula praised BYD’s entry as a symbol of the revitalization of industrialization and sustainability in Brazilstating that the factory will provide dignity to the local population and improve the quality of life.
Wang Chuanfu reiterated BYD’s commitment to Brazil, declaring that the company intends to establish itself as a truly Brazilian brand. “The future is electric and belongs to all of us”, he concluded.