Chinese new energy vehicle giant BYD will start selling two new passenger vehicle models for the Brazilian market this month. The two new models for the Brazilian market are the Song hybrid and the fully electric Yuan.
Both models will be imported directly from China, before BYD’s new factory in the northeastern state of Bahia starts operating.
“I believe now is the right time politically and environmentally for us to invest in building these new technologies in Brazil,” BYD Americas President Stella Li said in an interview during the launch of the two SUV models on Wednesday.
Brazil’s newly elected president, Luiz Inacio Lula da Silva, will take office on January 1. Lula da Silva has previously vowed to overhaul Brazil’s environmental policies, and his program for the election he won in October called for an industry focus on a “green economy” and the need to modernize the auto industry.
In October, BYD signed a letter of intent with the Bahia government to build a new energy vehicle production facility in an industrial park left by Ford.
Bahia’s government said BYD would invest $550 million to build a facility that manufactures electric bus and truck chassis, electric cars and processes lithium from mines in Brazil for export to China.
Two of the factories will be operational in 2024 and the third in 2025, the Bahia government said at the time.
Asked about the risks posed by Brazil’s history of political, economic and legal turmoil, he said BYD “had a lot of patience with Brazil.”
Li cited the size of Brazil’s new energy vehicle market, the availability of key minerals for electric vehicle batteries, and the new government appearing to be more open to boosting the sector.
BYD targets that 10% of all vehicle sales in Brazil will be electric and hybrid models by 2025, compared to 2.4% currently, and the electric vehicle market share could jump to 30% by 2030.
Li pointed to the tax burden as one of the main factors behind the high prices of electric and hybrid vehicles in Brazil compared to other markets.
