Chinese automaker to invest over $600 million in industrial complex in Brazil

Chinese automaker and the world’s largest electric vehicle (EV) maker, BYD plans to invest US$620 million in an industrial complex in Brazil. The complex in the north eastern Bahia state of Brazil is expected to begin operations in the second half of 2024. The complex will be built on a land previously occupied by a Ford plant in the Camacari industrial estate. Ford shut down the factory in 2021.

The BYD complex will consist of three plants

The Brazilian project, comprising of three plants will manufacture chassis for buses and electric trucks, assemble EVs, and will also produce lithium iron phosphate, a key material for EV batteries. The second plant, which will assemble EVs, will have an annual capacity of 150,000 units, the company said in a statement.

BYD’s Executive Vice President and Head of Americas operations, Stella Li said that the plants are expected to create 5,000 local jobs and will reinforce BYD’s aggressive expansion in South America.

World’s largest EV manufacturer, ahead of Tesla

In 2022, BYD dethroned Tesla as the world’s largest electric vehicle builder. It capitalised on the increasing penchant of Chinese drivers and vehicle owners for environment friendly vehicles. With the Brazil investment, BYD is accelerating its globalisation drive after setting a sales record in mainland China last month.

BYD delivered 2,53,046 cars in June 2023, a 5.3% increase over the 2,39,092 cars delivered in May. The Shenzhen based carmaker is backed by Warren Buffett’s Berkshire Hathaway.

BYD's global push

BYD has been aggressively tapping overseas markets by exporting Chinese-made vehicles to countries such as India and Australia. In March 2023, BYD started construction of a plant in Thailand, its first in Southeast Asia. The factory will have an annual capacity of 150,000 EVs when it is completed next year.

In May 2023, South China Morning Post (SCMP) reported that BYD signed a preliminary ­agreement with the Indonesian government to produce electric cars in the country. It is also building an assembly plant in Uzbekistan.