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| BYD |
Bahia SKD Plant Launches Amid Labor Dispute
China’s BYD Eyes Regional EV Export Expansion
BYD, China’s leading electric vehicle (EV) manufacturer, will begin semi-knocked down (SKD) assembly operations in Camacari, Bahia, on June 26, despite legal headwinds. The new facility, retrofitted from a former Ford plant, will initially assemble two top-selling models using components shipped from China.
Assembly Begins as Labor Suit Unfolds
The launch proceeds just days after Brazil’s Labor Prosecution Office (MPT) filed a lawsuit accusing BYD of human trafficking and slave-like labor conditions during the plant’s construction phase. Despite this, BYD confirmed it remains on track to achieve full production by December 2026, eventually targeting an annual output of 150,000 vehicles, including both battery electric (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Brazil as South American Export Base
Initially, the Bahia plant will serve the Brazilian market exclusively, but regional exports to Argentina, Chile, and Colombia are planned once the plant reaches full capacity. In the interim, auto parts will continue to be imported from China, though local labor integration is a key long-term objective.
Meanwhile, BYD’s dedicated cargo ship, the Shenzhen, made its first stop at Itajaí port, delivering 7,292 EVs from China. The ship, designed for this specific route, will be instrumental in scaling BYD’s Latin American logistics.
ScrapInsight Commentary
BYD’s strategic push into Brazil highlights the growing role of Latin America as a manufacturing and export node for global EV supply chains. However, labor compliance issues pose serious reputational and operational risks. For scrap markets, the expected ramp-up in local assembly could spur demand for recycled aluminum and steel components, especially if environmental standards tighten. Watch for policy shifts favoring circular supply inputs as Brazil ramps up EV localization.
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