BYD to Start EV Assembly in Brazil Amid Labor Allegations and Import Tariffs

China's leading electric vehicle manufacturer BYD is set to commence assembly operations at its new plant in Bahia, Brazil, this month. The move aims to produce 50,000 EVs in 2025, utilizing imported kits to mitigate higher import tariffs implemented by the Brazilian government starting July 1, 2025.

Labor Allegations and Investigation

Amid the plant's establishment, BYD has faced allegations of labor abuse during its construction. While local reports suggest that a labor investigation has not identified any irregularities, critics argue that Chinese companies have a history of importing their own workers and paying them significantly lower wages than local Brazilian workers.

Impact of Brazilian Import Tariffs

The higher import tariffs imposed by Brazil have compelled BYD to expedite the establishment of its local manufacturing facilities. Before the tariff increase, BYD imported around 22,000 fully built vehicles from January to May 2025 to cater to market demand.

Despite initial production delays due to heavy rains and the ongoing labor investigation, the Bahia plant is expected to provide employment opportunities for approximately 1,000 workers initially, with the potential to generate up to 20,000 jobs directly and indirectly over time.

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