Beijing, Oct. 10, 2025 (Lusa) - Chinese electric vehicle manufacturer BYD inaugurated its largest factory outside Asia in Brazil, in a project worth almost €900 million that consolidates China's growing industrial presence in South America.
The opening ceremony of the Camacari complex, in the state of Bahia, built on the former premises of the US company Ford, was attended by Brazilian President Luiz Inácio Lula da Silva, the Hong Kong newspaper South China Morning Post reported on Friday.
"We are here not just to build cars, but to build the future - a future that belongs to every Brazilian who chooses cleaner transport," said BYD founder and chairman Wang Chuanfu during Thursday's ceremony, according to the English-language newspaper.
The new plant represents an investment of 5.5 billion reais (€883 million) and will be the largest electric car factory in Latin America.
Production will start with an annual capacity of 150,000 vehicles, which could be increased to 300,000 in a second phase. The project is expected to generate more than 20,000 direct and indirect jobs when it is fully operational.
The first models produced include the Song Pro hybrid SUV, the Dolphin Mini electric compact and the King hybrid sedan. BYD also presented a special edition of the Song Pro with a flex-fuel hybrid engine - developed for the Brazilian ethanol market.
Since entering the Brazilian passenger vehicle market in 2022, BYD has sold more than 170,000 electrified cars and become the segment leader, accounting for 74.4% of electric or hybrid vehicle sales, according to industry data.
The brand already ranks seventh in the overall car market, overtaking traditional manufacturers such as Honda, with a share of more than 5.5%.
This meteoric growth has generated discomfort among competitors and controversy. The Brazilian vehicle manufacturers' association, Anfavea, which represents brands such as Toyota, Volkswagen and General Motors, accused BYD of "dumping" (selling price lower than production cost) and criticised the temporary exemption from tariffs for vehicles partly manufactured in Brazil.
After negotiations, the Brazilian government granted a six-month exemption worth around $463 million (€400 million), maintaining the plan to increase tariffs on imports from 2027.
BYD rejected the accusations, emphasising that its prices in Brazil are significantly higher than in China and that local production entails high operating costs.
In a statement, the company defended the need for tax differentiation between imported and domestically manufactured vehicles to encourage industrial investment.
The project has also faced criticism over labour conditions. Last year, the Public Ministry of Labour temporarily suspended the work after identifying cases of labour exploitation at the site. BYD said it had cooperated fully with the authorities and reiterated its "unwavering commitment to human and labour rights".
Despite the controversies, the investment is in line with the Brazilian government's industrial and environmental objectives. The company aims to have 70% of its components manufactured locally by 2028 and to set up research and testing centres in the country. The project has the support of the federal Mover programme, which encourages cleaner and more efficient automotive technologies.
At the ceremony, Lula praised the Chinese investment as a symbol of a return to industrialisation and sustainability. "God writes crooked lines well. Ford had to leave Brazil for BYD to come in. And I think it was a good exchange for us, because this is the most important technology in the global car industry," he said.
The Brazilian head of state also reinforced his desire to deepen relations with China, referring to his Chinese counterpart, Xi Jinping, as a "friend of Brazil" and emphasising that both are leaders of the Global South who "do not accept interference in their affairs".
"With this factory, we are presenting a nation project to the world," declared Lula. "We want a civilised relationship with everyone. This factory will give dignity back to the people of Camacari and allow them to live better lives with their heads held high," he pointed out.
Wang Chuanfu assured BYD of its long-term commitment to Brazil: "We will continue to invest here. We want to become a truly Brazilian brand. The future is electric, and it belongs to all of us."
JPI/ADB // ADB.
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