Chinese automaker BYD plans to start assembling electric vehicles at its new facility in Bahia, Brazil, this month.

According to Alexandre Baldy, the company’s senior vice president for Brazil, the plant aims to assemble 50,000 vehicles in 2025 using imported kits to reduce reliance on imports amid rising tariffs.

Baldy noted that final regulatory approvals for the factory are still pending.

Earlier this year, BYD increased imports of finished vehicles, shipping about 22,000 units from China to Brazil before higher import taxes took effect on July 1.

The Bahia facility, located at a former Ford plant acquired in 2023, has encountered delays and criticism.

Local labor authorities have indicated that the site may only be fully operational by the end of 2026. However, Baldy mentioned that full production is expected to start in July 2026.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ BYD’s Brazilian strategy spans a decade-long diversified approach

While the current article focuses on BYD’s EV assembly plans, the company’s Brazilian strategy has been unfolding for nearly a decade across multiple sectors.

BYD established its footprint in Brazil as early as 2014 when it invested $400 million to build its first battery factory in the country, a milestone witnessed by both Chinese President Xi Jinping and Brazilian President Dilma Rousseff 1.

The company has simultaneously developed public transportation infrastructure projects, including a 20-kilometer SkyRail monorail in Salvador designed to serve 150,000 daily passengers 2.

This diversified approach aligns with BYD’s global strategy of creating a “Zero Emissions Energy Ecosystem,” integrating electric vehicles, energy storage, and public transit solutions rather than focusing solely on passenger cars 3.

By 2024, this comprehensive approach helped BYD capture over 80% of Brazil’s battery-electric vehicle market, with sales increasing 300% year-over-year to 76,713 vehicles 4.

2️⃣ Brazil’s EV tariff strategy creates urgent timeline for manufacturing shift

The rush to begin assembly in Brazil reflects a direct response to the country’s strategic tariff policy designed to boost local manufacturing.