By Brazil Stock Guide — One year after opening its manufacturing complex in Camaçari, in Brazil’s northeastern state of Bahia, Chinese automaker BYD is entering a pivotal phase of its expansion in the country: moving beyond the assembly of vehicles using imported components toward a more integrated manufacturing operation capable of serving both the domestic market and other Latin American countries.
BYD said Friday (October 23) that its new welding and painting facilities are undergoing final operational tests, while construction of its stamping plant is at an advanced stage. More than 1,100 workers have already been hired and are receiving training for the new production lines. The company aims to enter 2027 with more than 50% locally sourced content in vehicles manufactured in Brazil.
The transition marks an important step in BYD’s strategy in Brazil, its largest market outside China. Since the Camaçari complex opened in October 2025, questions have been raised about the operation’s heavy reliance on imported components. Bringing welding, painting and stamping operations in-house should deepen local manufacturing integration and create opportunities for Brazilian auto-parts suppliers.
BYD has also begun seeking the regulatory approvals needed to expand Camaçari’s annual production capacity to 600,000 vehicles. The plant has an initial stated capacity of 150,000 vehicles a year, with an intermediate expansion target of 300,000. The company has not set a timetable for reaching its ultimate capacity goal.
Demand Outpaces Planned Production
The investment push comes as BYD continues to expand its sales in Brazil. The company estimates domestic demand for its vehicles at around 30,000 units a month, while aiming to increase local production to 25,000 vehicles per month by December.
In September, BYD recorded 22,209 new vehicle registrations in Brazil, capturing an 8.5% market share, according to company figures. Its stated ambition is to overtake established automakers and become Brazil’s largest carmaker by sales volume by 2030.
The Camaçari complex, built on the site of a former Ford manufacturing plant, already employs approximately 9,000 workers, 90% of whom are from Bahia, according to BYD. The company expects its workforce to reach 10,000 by the end of 2026. Investment in the complex has already exceeded the initially announced R$5.5 billion (about $1 billion).
Brazil as a Regional Export Hub
Increasing local production is also central to BYD’s regional expansion strategy. The automaker has received orders for 100,000 vehicles destined for export, split equally between Argentina and Mexico. The orders were originally announced in March, and BYD expects to begin fulfilling them in 2027.
By then, a higher proportion of locally produced components is expected to help the company meet applicable manufacturing and regional trade requirements.
The strategy could turn Camaçari into a manufacturing and distribution hub for electric and plug-in hybrid vehicles across the Americas, strengthening Brazil’s position within the Chinese automaker’s global operations.
The industrial transition, however, remains a work in progress. Although vehicle assembly is already underway, the new manufacturing stages are not yet fully operational. Meeting BYD’s local-content target will also depend on the successful integration of Brazilian suppliers into its production network.
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