China's BYD plans to double capacity at Brazilian plant

By Luciana Magalhaes

SAO PAULO, Oct 23 (Reuters) - Chinese electric carmaker BYD 002594.SZ is seeking permits to double annual production capacity at its Brazilian plant to 600,000 vehicles, as it nears completion of its stamping, welding, and paint facilities, its top executive in Brazil said.

BYD's Brazil unit is on track to locally source more than 50% of its components, looking to exceed the required minimum as it enters 2027, which will satisfy regulatory demands and help it begin regional exports, Senior Vice President Alexandre Baldy said in an interview.

"We are working to begin 2027 above this threshold ... so that we are officially recognized as a local producer," Baldy said.

Local industry groups have complained that BYD, which opened its newest plant in South America's largest car market a year ago, relied on imports and temporarily low tariffs.

BYD has set its sights on becoming Brazil's biggest automaker by sales volume by 2030, though Baldy did not give a time frame for doubling capacity. It is already seeing demand outstrip its current production capacity, he told Reuters.

While BYD is ramping up operations and plans to reach a monthly output of 25,000 vehicles by the end of 2026, current demand is likely to continue to top supply.

"Our demand has averaged around 30,000 cars per month, meaning we are missing out on roughly 5,000 to 6,000 additional invoiced sales," Baldy said.

Investment in the company's new Brazil plant has already exceeded the planned 5.5 billion reais ($1.09 billion) and billings by the company's Brazil unit will this week hit 200,000 cars so far this year, Baldy said.

In September, the company had a total of 22,209 vehicles registered in Brazil, equivalent to a market share of 8.5%, according to company data. The country's top sellers in September were Stellantis STLAM.MI Fiat, Volkswagen VOWG.DE and General Motors GM.N.

BYD is already a market leader in Uruguay and sales rank highly in Colombia and Argentina, Baldy said.

The Brazilian unit has also received orders for 50,000 units each from Mexico and Argentina, which it will be able to start meeting next year with its increased ratio of local components.

BYD opened its plant in Camacari, Bahia, on October 9, 2025, at an industrial complex once owned by Ford Motor.

The factory currently employs about 9,000 people and expects to grow its workforce to around 10,000 by the end of this year.

($1 = 5.04 Brazilian reais)