BYD to Start Brazil EV Assembly Amid Rising Tariffs

BYD, a prominent Chinese electric vehicle manufacturer, is set to commence the assembly of electric vehicles at its new factory in Brazil. This development comes as tariffs in Brazil, BYD's largest overseas market, begin to rise, prompting the company to reduce its reliance on imports. The factory, located in Bahia state, aims to assemble 50,000 vehicles this year using imported component kits. The company is also in negotiations to lower the tax rates on these vehicles.

The factory is expected to hold an opening ceremony in the coming days, although the exact date remains uncertain due to pending regulatory approvals. The company has already completed its import quota for the year, taking full advantage of the lower tariff rates that were in effect before July 1. The factory's operations have faced delays due to labor investigations and adverse weather conditions, but the company remains optimistic about its future prospects.

Despite the challenges, the factory is expected to create up to 20,000 direct and indirect jobs once it reaches full production capacity. The company plans to utilize "completely knocked down" (CKD) kits to assemble vehicles over the next 12 months, with full-scale production slated to begin in July 2026. This strategic move is part of BYD's broader plan to accelerate the energy transition in Latin America, where it has already established a strong presence with over 130,000 vehicles sold since 2021. The company aims to further solidify its market position by building a local supply chain and enhancing its production capabilities in the region.

BYD's decision to establish a manufacturing presence in Brazil is a significant step in its global expansion strategy. By assembling vehicles locally, the company can reduce its reliance on imports and mitigate the impact of rising tariffs. This move is also expected to create jobs and stimulate economic growth in the region, further solidifying BYD's position as a leading player in the global electric vehicle market.