Tuesday, 02 January 2024 12:17 GMT

BYD Opens Camaçari EV Plant, Testing Brazil's New Industrial Playbook


(MENAFN- The Rio Times) The gates at Camaçari are open again. Where Ford's shutdown once symbolized Brazil's industrial retreat, Chinese automaker BYD has switched the lights back on with a new electric-vehicle complex in Bahia.

The company is starting with semi–knock-down assembly, finishing cars from imported kits while it builds stamping, welding and painting to lift local content from 2026.

BYD says it is investing R$ 5.5 billion, with capacity of 150,000 vehicles a year at launch and 300,000 after expansion. Early output includes the all-electric Dolphin Mini and two plug-in hybrids, King and Song Pro.

BYD also showed a Brazil-specific flex-fuel plug-in hybrid prototype that can use ethanol or gasoline plus electricity-an attempt to mesh electrification with the country's ethanol network and limited fast-charging coverage.

Government and company estimates point to thousands of jobs as localization deepens, with up to 20,000 direct and indirect positions at full stride.



The story behind the ribbon-cutting is a test of Brazil's new industrial playbook. Brasília is trying to lure cleaner cars and rebuild manufacturing without repeating past mistakes.
BYD's Brazil EV Project Tests Industrial Policy and Compliance
Policy makers advanced the full 35% tariff on CKD/SKD electrified kits to January 2027, while granting a short, zero-tariff window through early 2026 to help new lines ramp up. The aim: let companies start now-but nudge them quickly toward real production in Brazil.

That's where the tension lies. Incumbent automakers and parts makers warn that leaning on kits for too long hollows out the supply base and limits jobs.

BYD counters that a brief start-up phase is the price of affordable electrified cars and the tooling needed for heavy manufacturing. There is another shadow.

During construction in 2024, Brazilian labor authorities said they rescued foreign workers from conditions analogous to slavery. BYD cut ties with the implicated subcontractor and says it is cooperating with investigators. Compliance will be watched as closely as output.

If Camaçari moves from kit assembly to full manufacturing on schedule, it could anchor a Northeast EV hub, bring entry-level electrified models within reach of Brazilian buyers, and prove that industrial policy can deliver more than ceremonies. If it stalls, the plant risks becoming a symbol of assembly without development.

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