BYD Brazil Plant Delayed to 2026 Amid Labor Abuse Investigations

BYD Brazil Plant

Labor Issues Postpone BYD’s Brazil EV Expansion

BYD’s Brazil plant opening has been delayed to December 2026 due to labor abuse investigations involving Chinese workers. This delay pushes the timeline back by over a year and raises concerns about transparency and labor practices in international EV manufacturing ventures.

The plant, located in Camacari, Bahia, is a converted Ford facility originally slated to begin operations in March 2025. However, in December 2023, Brazilian authorities discovered 163 Chinese workers living in "slave-like" conditions, prompting an immediate halt to construction. According to Bahia’s labor secretary Augusto Vasconcelos, the factory will now be fully operational by late 2026, although partial assembly operations may begin sooner.

Concerns Mount Over BYD’s Long-Term Commitments in Brazil

While the site is still expected to begin assembling imported, pre-assembled vehicles this year, local labor unions fear a shift toward a mere distribution hub. Julio Bonfim, head of the Camacari metalworkers union, emphasized that the factory must “make vehicles, not just assemble and distribute them.”

These concerns are rooted in BYD's growing import strategy, which could undermine domestic manufacturing and job creation promises. Although BYD has pledged to create 10,000 direct jobs when at full capacity, delays and partial assembly plans have cast doubt on the project’s original intent.

Brazil Remains a Key Market for BYD Despite Setbacks

Despite the controversy, Brazil continues to be BYD’s largest overseas market. The company sold over 76,000 EV units in Brazil in 2024, with 8,344 sold in April alone, making it the country’s seventh-largest automaker by volume.

The new plant aims to produce 150,000 electric vehicles annually, including both battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). The project remains strategically important for BYD as it expands beyond China and seeks dominance in Latin America's fast-growing EV sector.

The Metalnomist Commentary

The delay of BYD’s Brazil plant exposes the risks of rapid international expansion without strong labor oversight. As EV makers globalize their supply chains, ethical manufacturing practices and community trust will become as critical as production volume. For Brazil, this case serves as a pivotal moment to assert stronger domestic industrial policy in the EV era.