17:03 05-02-2026

BYD boosts Brazilian production with 50% local parts by 2026

BYD aims to produce 50% of parts locally in Brazil by 2026, increasing plant capacity to 300,000 vehicles and targeting top automaker status by 2030.

Chinese automotive giant BYD is accelerating the expansion of its Brazilian cluster and announcing a shift to local components. The company aims to produce and procure 50% of all parts domestically by the end of 2026—a key move to strengthen its position in Latin America's largest market. The plant in Camaçari, built on the site of a former Ford complex, has already produced around 25,000 electric and hybrid vehicles and is preparing for a major capacity increase.

BYD emphasizes that transitioning to local parts is necessary not only to meet regulatory requirements but also to start exports to Mercosur countries this year. Plans include creating up to 20,000 jobs and launching a full production cycle, covering stamping, welding, and painting. This is part of the first investment phase worth 5.5 billion reais, which should boost the plant's annual capacity to 300,000 vehicles.

Amid criticism from local unions about excessive reliance on imported SKD kits, BYD states that the transitional regime is coming to an end. The company plans a short-term extension of import benefits for components but highlights that production will only become economically sustainable with deep localization.

BYD's strategy is clear: by 2030, the brand wants to become Brazil's top automaker by sales volume. The accelerated localization shows that the fight for leadership has already begun.