The opening of Chinese automaker BYD's plant in Brazil has been delayed by more than a year because of labor abuse investigations, pushing the start date to December 2026.
The plant's construction in the state of Bahia was paused in December when Brazilian authorities found 163 Chinese workers living and working in conditions described by the country's labor ministry as "slave-like." This led to labor abuse investigations at the site that delayed the start-up date, according to Bahia's labor secretary Augusto Vasconcelos.
BYD planned to start production in March 2025, but in a video posted on social media this week, Vasconcelos said the plant will now be "fully functional by December 2026." It is expected to generate 10,000 direct jobs at full capacity.
The Chinese automaker is converting a former Ford factory in Camacari, Bahia, into a 150,000 electric vehicle (EV)/yr plant encompassing plug-in hybrids (PHEVs) and battery electric vehicles (BEVs).
The factory is still expected to open at a reduced capacity at some point this year, with vehicles being imported in pre-assembled segments to be finished in Brazil, Vasconcelos said.
Last week, the Camacari metalworkers union raised concerns about BYD permanently turning its Brazilian plant into a distribution hub for finished cars imported from China.
"The factory must make vehicles, not only work as an assembly and distribution hub," said Julio Bonfim, head of the union through his social media account.
BYD Brazil sold 8,344 units in April, the seventh most in the country, totaling 29,737 so far for the year according to data from Brazilian EV association ABVE. In 2024, BYD sold 76,454 units in Brazil, the company's top market outside of China.
