BYD to Start Assembling Electric Vehicles at New Factory in Brazil
- BYD plans to assemble 50,000 electric vehicles in Bahia, Brazil.
- Regulatory approvals for the new plant are still pending according to Alexandre Baldy.
- The factory is set to begin operations amid rising import tariffs affecting EV imports.
BYD’s Electric Vehicle Assembly Plans in Brazil
Chinese automaker BYD is gearing up to start assembling electric vehicles at its new factory located in Bahia, Brazil, with plans to kick things off this month. According to Alexandre Baldy, the senior vice president for BYD in Brazil, the goal is to produce about 50,000 vehicles by the year 2025 using kits that have been imported, which aims to ease the dependence on finished product imports while adjusting to rising tariffs. However, Baldy did mention that regulatory approvals for the factory are still awaited, which could delay the commencement of operations.
Progress and Challenges at Bahia Facility
Earlier this year, BYD ramped up imports of completed electric vehicles, transferring around 22,000 units from China to Brazil right before the new, higher import taxes took effect on July 1. The Bahia facility occupies a former Ford manufacturing plant that BYD acquired in 2023 but has faced a number of delays and local criticism regarding its progress. Local authorities suggest that the factory will not be fully operational until late 2026, yet Baldy expressed optimism, stating that production is expected to ramp up by July 2026.
Tariff Policies and Labor Issues in Brazil
In a broader context, BYD’s manufacturing ambitions in Brazil align with a strategic shift in response to the government’s tariff structure, which gradually increases import tariffs on electric vehicles. This boost in local manufacturing is crucial as Brazil’s tariff policy rises from 0% to 35% by July 2026, leading companies like BYD to hasten their manufacturing efforts, as can be seen from their recent surge of imports. Furthermore, significant labor controversies at the construction site have surfaced, raising serious ESG concerns regarding working conditions for employees, impacting BYD’s reputation and investment plans in the region.
BYD is on the verge of commencing EV assembly in Brazil, with aspirations for substantial production by 2025 amid a rapidly changing tariff landscape. Yet, the project encounters regulatory hurdles and labor-related controversies that could complicate its expansion. As BYD moves forward, its commitment to local manufacturing and compliance with labor standards will be critical for navigating both economic and reputational challenges in the Brazilian market.
