BYD Brazil car assembly begins at Camacari, targeting rapid scale-up

BYD Brazil

BYD Brazil car assembly started on 1 July with SKD kits at Camacari. The launch covers three best-selling models for the local market. The plant’s start slipped from March after a labor investigation. BYD Brazil car assembly anchors the company’s Latin America strategy.

Ramp-up plan and localization

BYD plans 50,000 cars per year initially, rising to 150,000 in 2026. The factory targets 600,000 vehicles annually within five years. For 12 months, operations focus only on SKD assembly. Afterward, full vehicle manufacturing will begin in Brazil. Therefore, BYD Brazil car assembly will transition to deeper localization. BYD will source parts from 106 Brazilian suppliers after the SKD phase. Only Continental Tires supplies from day one due to a neighboring plant. Camacari aims for full operational status by December 2026. Full capacity will be reached gradually by 2031.

Models, powertrains, and export strategy

The plant first assembled the all-electric Dolphin Mini, branded Dolphin Surf in Europe. It will also assemble the Song Plus PHEV and Sedan King. BYD partnered with Brazilian scientists on a flex-fuel hybrid powertrain. The system runs on gasoline or ethanol, matching local fuel economics. Meanwhile, Camacari will initially serve only Brazil. As a result, exports to Argentina, Chile, and Colombia will follow later.

The localization path supports tax efficiency and supply resilience in Brazil. Flex-fuel PHEVs address consumer preferences in a 90% flex-fuel market. Therefore, the Camacari investment positions BYD for share gains. The phased approach also limits execution risk during ramp-up.

The Metalnomist Commentary

BYD’s SKD-to-full-build roadmap smartly balances speed, cost, and policy alignment. Success hinges on supplier onboarding, flex-fuel calibration, and quality consistency at higher volumes.

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.

Comexport to assemble GM Chinese EVs in Brazil

Comexport

Comexport to assemble GM Chinese EVs marks a major shift in Brazil’s role within global EV supply chains. The Brazilian foreign trade firm will assemble GM’s new Spark EUV, a Chinese electric vehicle sold under the Chevrolet brand, at the former Ford-owned PACE industrial hub. As a result, the Comexport to assemble GM Chinese EVs deal turns a decommissioned plant into a regional platform for imported Chinese SKD units.

The project uses a flexible contract-assembly model rather than an equity partnership or joint venture. Comexport will import semi-knocked-down Spark units from China, already welded, painted and partially manufactured, and then complete final assembly at PACE. Meanwhile, GM will supervise production quality and pay Comexport per unit, ensuring OEM control over standards while limiting capital exposure. Therefore, the Comexport to assemble GM Chinese EVs contract gives GM fast market access with lower fixed costs.

PACE becomes Brazil’s first multi-brand EV assembly hub

PACE will emerge as Brazil’s first and only multi-brand vehicle assembly line once all client negotiations close. The plant, acquired by Comexport in 2024 from the state of Ceara, will serve at least three carmakers, with GM confirmed as the first anchor client. Initially, the facility will operate below its 80,000 vehicle per year capacity and gradually ramp up as the local supply chain matures.

GM plans for all Spark units sold in Brazil to be assembled as SKD imports over time. However, the company will first bring in fully built consumer-ready vehicles while Comexport stabilises processes and tooling. As the supply chain “nationalises”, more Brazilian auto-parts suppliers will enter the platform, supporting localisation targets and potentially unlocking tax and industrial policy incentives. This phased approach reduces ramp-up risk while anchoring long term EV manufacturing in northeastern Brazil.

Chinese EV platforms deepen their footprint in Latin America

The project highlights how Chinese EV platforms penetrate Latin America via global OEM brands and contract assemblers. The Spark is a Chinese-developed model from the joint venture between GM, SAIC and Wuling, sold domestically as the Baojun Yep Plus. Therefore, Brazilian consumers will buy a Chevrolet-badged vehicle that originates from a Chinese EV architecture. PACE will exclusively assemble hybrids and EVs, increasing the likelihood that future clients will also be Chinese or China-linked automakers.

For GM, this structure supports a broader strategy of leveraging Chinese small-EV know-how while maintaining brand control in key emerging markets. For Brazil, the Comexport to assemble GM Chinese EVs model could accelerate EV adoption, technology transfer and supplier upgrading, especially in battery, electronics and lightweight components. However, policymakers and local OEMs will also scrutinise the impact on domestic manufacturers and industrial competitiveness as Chinese-origin platforms gain share.

The Metalnomist Commentary

This deal illustrates how decommissioned legacy plants can be repurposed into EV assembly hubs bound into China-centric technology networks. By combining SKD imports, contract assembly and gradual localisation, Comexport and GM create a flexible template that other brands may copy across Latin America. Market participants should watch how quickly local suppliers move into higher value EV components and how Brazil balances openness to Chinese platforms with support for domestic champions.