BYD to Assemble 50,000 EVs in Brazil Despite Local Concerns

Chinese electric vehicle (EV) manufacturer BYD plans to start assembling cars in Brazil this month, targeting production of 50,000 vehicles in 2025 at its new plant in Camaçari, Bahia state. The facility will initially assemble vehicles from imported “complete knock down” (CKD) kits before transitioning to full production by July 2026, according to Alexandre Baldy, BYD’s Senior Vice President in Brazil.

“We expect to inaugurate in the coming days,” Baldy said, noting that the company is awaiting final regulatory approvals. “We have already completed this year’s imports, taking advantage of the period before the import tax increase that took effect on July 1.”

BYD imported approximately 22,000 vehicles from China into Brazil during the first five months of 2025, based on Reuters calculations. These imports preceded a new import tariff imposed by the Brazilian government. The surge in shipments drew criticism from domestic industry groups concerned that BYD prioritized Chinese manufacturing over local production.

The plant will initially assemble two models: the Dolphin Mini, a compact all-electric hatchback with 75 horsepower, 135 Nm of torque, and a range of up to 380 kilometers; and the Song Pro, a plug-in hybrid SUV combining a 1.5-liter gasoline engine with an electric motor, delivering a total output of 217 horsepower and a combined range of up to 1,100 kilometers.

On July 2 the Camaçari plant produced its first electric vehicle, the Dolphin Mini. With over 34,000 units sold, the Dolphin Mini is currently Brazil’s best-selling electric vehicle. Production of plug-in hybrid models Song Pro and King is expected to begin soon.

The new plant occupies the former site of a Ford factory, which BYD acquired for US$57 million in 2023. The facility has faced challenges, including heavy rainfall and a labor investigation into the treatment of construction workers. In December 2024, labor inspectors accused Chinese contractors at the site of abusive practices.

Despite these setbacks, BYD intends to use the Camaçari plant as a key hub in its international expansion strategy. Once fully operational, the complex is expected to create up to 20,000 direct and indirect jobs, according to Baldy.

The company is currently negotiating with Brazilian authorities for lower taxes on vehicles assembled locally from imported kits. BYD’s entry into Brazilian manufacturing comes amid intensifying EV competition in Latin America’s largest economy, driven by shifting trade and industrial policies.

In May, BYD accounted for 90% of electric vehicle sales in Brazil and operates a network of 180 dealerships, expected to expand to 240 by 2025. Local officials, including Bahia Governor Jerônimo Rodrigues and Camaçari Mayor Luiz Caetano, have emphasized the plant’s role in the state’s reindustrialization efforts.

Despite its broader strategy to expand across Latin America using Camaçari as a regional hub to supply electric and hybrid vehicles to markets such as Argentina, Chile, and Colombia, BYD has canceled plans to establish a plant in Mexico. The Mexican facility was originally intended to serve the domestic market, Latin America, and eventually the United States, with an expected investment decision and site selection by late 2025.

However, the company cited uncertainty surrounding US automotive tariffs and rising geopolitical tensions linked to former President Donald Trump as reasons for the cancellation. BYD Executive Vice President Stella Li stated in Bahia that while the company remains committed to growth in the Americas, no new investment is planned in Mexico at this time. “Geopolitical issues have a significant impact on the automotive industry,” Li said, adding that BYD will wait for greater clarity before proceeding.