BYD to Start Assembling Cars in Brazil in June

BYD

Chinese EV giant BYD will begin vehicle assembly in Brazil on 26 June, despite delays from labor investigations.

BYD Launches SKD Assembly at Bahia Plant

BYD will start assembling semi-knocked down (SKD) electric vehicles in Camacari, Bahia, using kits shipped from China. The limited operation will focus on two of BYD’s best-selling models for the Brazilian market, the firm confirmed this week.

The announcement came just one day after Brazil’s labor prosecution office (MPT) filed a lawsuit against BYD. The charges include allegations of human trafficking and slave-like conditions at the plant’s construction site.

However, BYD remains committed to its local production schedule, aiming to reach full capacity by December 2026. The plant, converted from a former Ford facility, will eventually support 150,000 EVs annually, including BEVs and PHEVs.

Brazil Plant to Become Regional Export Hub

The Bahia plant will initially supply only Brazil but will later serve as a regional export base. Plans include exporting locally assembled EVs to Argentina, Chile, and Colombia once full-scale operations commence.

Auto parts will continue to be imported from China until the full assembly process becomes operational in Brazil. State labor secretary Augusto Vasconcelos noted that full-scale production will integrate both local labor and international supply chains.

Meanwhile, BYD’s specialized cargo vessel, the Shenzhen, made its inaugural docking at Itajai port, delivering over 7,292 EVs. The ship, built for this exact route, will support BYD’s increasing international footprint.

The Metalnomist Commentary

BYD’s decision to proceed with SKD production despite controversy highlights its aggressive global expansion strategy. Brazil’s EV market is still emerging, and BYD’s investment positions it as a first-mover with regional dominance potential. But reputational risks from labor practices must be addressed if the brand wants long-term consumer trust in Latin America.