Chinese electric automaker BYD has officially picked Brazil as its first-ever electric vehicle production plant location beyond Asia.
The automaker will reportedly allocate 3 billion reais ($624 million) for the project as part of its global expansion efforts.
The announcement comes just a few days after BYD reported the successful arrival of the first 100 Yuan Plus in Mexico.
About the project
The EV and power battery giant announced through its Twitter account that it will establish three different factories in the Camaçari Complex in the northeastern state of Bahia. BYD disclosed that the complex will support the production of the following technologies:
- hybrid and electric car
- electric buses and trucks chassis
- lithium and iron phosphate processing
BYD expects to begin operation at the new site by 2024, marking the company’s first-ever EV hub beyond Asia.
According to the company, the Brazilian factory will reach an initial capacity of 150,000 units annually. Remarkably, that capacity can even rise to 300,000 units once fully operational.
Apart from that, the facility will also generate over 5,000 job opportunities and attract local suppliers.
Apparently, BYD’s plant will be the country’s second clean vehicle-dedicated factory. The first one was Great Wall Motors’ acquisition of a Daimler AG factory in Sao Paulo in 2021.
“This will become the hub for innovation… Because we own the technology, we have capability to help them.”
Stella Li, BYD Global VP
It must be noted that VP Li referred to the suppliers in the last statement, further saying they will be coached.
Why Brazil?
The government of Brazil has been actively employing significant efforts to attract investments from major companies, particularly from China.
“Brazil wants more Chinese companies to invest here, to help the local economy. Visibility for the future is an important factor for us.”
Stella Li, BYD Global VP
For instance, President Luiz Inacio Lula da Silva visited President Xi Jinping in April. Both country leaders inked approximately 50 billion reais in Chinese investment commitments. This initiative is part of the Brazilian President’s strategy to attract Chinese companies to invest in the country as he seeks to generate job positions.
In effect, EV giant BYD has set its sights on the Brazilian plant.
“This is a country we trust and this is a government we trust. I see a China-Brazil win-win position to build up a top level, very friendly relationship. And this is making a huge difference.”
Stella Li, BYD Global VP
See Also:
- BYD accelerates North American expansion with first 100 Yuan Plus EVs arriving in Mexico
- Warren Buffett’s Berkshire Hathaway sells $86.3 million worth of BYD shares, alters investment priorities
- BYD, CATL, Eviation Aircraft, ZeroAvia, Octopus Energy, Kia, Albemarle in Time’s ‘100 Most Influential Companies 2023
- BYD launches the all-electric Dolphin in Europe with a base price of €29,990
- Top car brands in China in May 2023 – BYD first, VW second, Toyota third
BYD’s plan to expand in Brazil is unsurprising given the substantial government support it has been receiving.
In return, BYD will surely aid the country’s local economy in reaching new heights, especially in the electric vehicle industry.
