BYD Starts Production at Camaçari Factory in Brazil
- BYD starts production at its first EV plant outside China in Brazil.
- The Camaçari facility has a capacity of 150,000 units annually.
- Initial models assembled include the BYD Dolphin Mini and other vehicles.
- The plant’s development involved a R$5.5 billion investment commitment.
- The facility functions as a semi-knock-down (SKD) plant for vehicles. The launch coincided with a hike in EV import tariffs in Brazil.
BYD Begins Production in Camaçari Plant in Brazil
BYD officially kicked off production at its new Camaçari plant in Brazil, marking a significant milestone as their first electric vehicle factory outside of China. The plant aims to assemble three models initially: the BYD Dolphin Mini, which is referred to as the Seagull in its home market, alongside the Song Pro and King (BYD Qin Plus DM-i). This initiative represents the company’s bold push into the Brazilian EV market, tapping into a growing demand for electric vehicles in the region.
Capacity and Investment at the New Plant
The Camaçari facility is located in the northwest state of Bahia, a site formerly occupied by Ford’s operations before its acquisition by BYD in March 2024 for a reported R$300 million, around $55 million USD. The plant comes equipped with 26 warehouses and includes a test track, boasting an impressive annual production capacity of 150,000 units. BYD’s total investment commitment for this facility is R$5.5 billion (roughly $1 billion USD), with R$1.4 billion already poured into the project during its development.
Structure of Production and Local Partnerships
As part of its operational model, the Camaçari plant will function using a semi-knock-down (SKD) approach. This means BYD will partially dismantle its vehicles into major components—like the battery and motor—from China and ship them to Brazil for final assembly. The company has also expressed plans to increase local sourcing for manufacturing, having already partnered with Continental for tire production domestically. However, the timing of the plant’s opening coincided with Brazil’s recent decision to raise tariffs on electric vehicle imports, which could complicate BYD’s operations moving forward.
In summary, BYD’s foray into Brazil with its new Camaçari plant reflects its commitment to expanding its global presence in the EV market. With significant investments and plans for local production, the company’s growth strategy faces challenges, including increased import tariffs and previous legal issues regarding worker safety. As it navigates these hurdles, BYD’s initiative could greatly impact Brazil’s electric vehicle landscape.
