Chinese electric vehicle manufacturer BYD plans to have its new factory in Brazil fully operational by December 2026, following delays linked to a labor investigation, according to Bahia state labor secretary Augusto Vasconcelos.
Production will begin later this year using semi-finished kits imported from China, Vasconcelos said in a video posted on social media Monday. “A new schedule is being established so that by December 2026 the factory will be fully functional with the expectation of generating 10,000 jobs,” he added.
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The announcement comes as Bahia Governor Jeronimo Rodrigues accompanies Brazilian President Luiz Inacio Lula da Silva on an official trip to China, where discussions are underway with BYD on the company’s plans for expansion in Brazil’s auto sector.
BYD confirmed in a statement that operations will commence in 2025 with vehicle assembly, followed by a gradual increase in local production of its best-selling models. The plant, located in Camaçari, Bahia, is being developed on the grounds of a former Ford Motor facility and is expected to have an annual production capacity of 150,000 electric vehicles.
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The project, which marks BYD’s largest investment outside China, was initially set to begin operations earlier this year. However, an investigation into labor practices and seasonal heavy rains delayed progress, according to Julio Bonfim, head of the Camaçari metalworkers union.
BYD is expected to hire about 1,000 workers this year to begin vehicle assembly using imported kits. Although this falls short of initial projections, Bonfim said the updated timeline represents a positive development. “Next year, we expect hiring to accelerate as the company moves toward full production in Brazil,” he said.
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The company also aims to contribute to Brazil’s battery supply chain, acquiring rights to lithium-rich mining areas in the country. BYD recorded sales of 76,713 vehicles in Brazil last year, up from 17,937 in 2023, marking a year-on-year growth of roughly 328%, according to company data. Overall, BYD expects the factory project to generate as many as 20,000 direct and indirect jobs.