BYD is seeking regulatory approval to double the annual production capacity of its Brazilian factory to 600,000 vehicles as the Chinese automaker expands manufacturing and prepares to serve additional Latin American markets.
The company is nearing completion of its stamping, welding and paint facilities at the plant in Camacari, Bahia. BYD Brazil Senior Vice President Alexandre Baldy told Reuters that demand is already exceeding current production capacity, although he did not specify when the proposed capacity expansion would be completed.
Demand Outpaces Current Production
BYD plans to increase monthly output at the Brazilian facility to 25,000 vehicles by the end of 2026. However, Baldy said average monthly demand has reached approximately 30,000 vehicles, leaving the company unable to fulfill thousands of potential sales.
“Our demand has averaged around 30,000 cars per month, meaning we are missing out on roughly 5,000 to 6,000 additional invoiced sales,” Baldy said.
Investment in the factory has already exceeded the initially planned 5.5 billion reais, equivalent to approximately US$1.09 billion. The Brazilian unit is also expected to reach 200,000 vehicle billings for the year, according to Baldy.
Local Sourcing Targets Support Export Plans
BYD aims to source more than 50% of its components locally as it enters 2027, exceeding the minimum threshold required to qualify as a local producer under applicable rules.
“We are working to begin 2027 above this threshold … so that we are officially recognized as a local producer,” Baldy said.
The company expects the higher local-content ratio to support regulatory compliance and enable exports to regional markets. BYD’s Brazilian operation has received orders for 50,000 vehicles each from Mexico and Argentina, with deliveries expected to begin next year as its localization efforts advance.
The strategy comes amid criticism from Brazilian industry groups over BYD’s reliance on imported vehicles and previously low import tariffs.
BYD Expands Its Regional Footprint
BYD opened the Camacari factory on October 9, 2025, at an industrial complex previously owned by Ford Motor. The facility currently employs around 9,000 people, with the workforce expected to reach approximately 10,000 by the end of 2026.
In September, BYD recorded 22,209 vehicle registrations in Brazil, representing an 8.5% market share, according to company data. Fiat, Volkswagen and General Motors were among the country’s leading sellers that month.
The company is already a market leader in Uruguay and has also achieved strong sales positions in Colombia and Argentina, Baldy said. BYD aims to become Brazil’s largest automaker by sales volume by 2030.
Expanding production capacity and increasing the share of locally sourced components could help the company meet domestic demand while building Brazil into a manufacturing and export base for Latin America.