BYD to spend $620 mn for three-plant complex in Brazil

China's BYD will spend $620 million to set up a new, three-complex in the Camacari industrial park in northeastern Brazil, the company announced.

BYD's announcement comes on the back of news reports that the Brazilian government was pushing the Chinese car company to build a new electric car hub at the site, once home to a Ford factory, after the US carmaker closed its plant in 2021, citing the Covid-19 pandemic.

BYD's takeover of the site marks another notch in the expansion of Chinese automakers into the Western and Latin American markets, traditionally the strongholds of US and European carmakers. The global foray comes on the back of strong domestic numbers. Latest data shows that BYD sold 700,244 electric and hybrid vehicles in China during the April-June quarter, crossing the 250,000-vehicle mark for the first time in June.

The complex, due to open in mid-2024, is expected to help BYD boost local production and offer more competitive prices.

In a statement, BYD said each of the three plants will house different operations: one unit will be dedicated to chassis for buses and electric trucks, while another will focus on hybrid and electric cars. It will have an estimated initial production of 150,000 cars per annum. The third plant will process lithium and iron phosphate for the overseas markets.