- Sales of electric or hybrid vehicles in Brazil accounted for only 2.5 percent and is speculated to reach 7 percent of light vehicle sales by the end of 2030
- The new BYD plant will be furnished with a manufacturing capacity of 1,50,000 units, which in future could augment to 3,00,000 units
The China based global auto manufacturer BYD Auto has now decided to set-up its first EV manufacturing plant in Brazil with an investment of $624 million. This is the first time the company has decided to set-up its plant outside the Asian region in an effort to expand its geographical reach.
BYD, which is a manufacturer of pug-in hybrid and fully electric cars aims to commence its production unit in the northwestern state of Bahia in Brazil, according to a media report. The new manufacturing unit will be equipped with electric and hybrid car production and there will be another unit, which will focus on the manufacturing of electric trucks and buses. The third unit will process iron phosphate and lithium for the global market.
According to the report of Bloomberg, the operations of the new production unit in Brazil is anticipated to commence in the first half of 2024, Reports also surfaced that apart from Brazil, the company is also willing to invest soon in Vietnam and Thailand. According to the experts, BYD has taken this decision as the Brazil Government for a long time wants to form an amicable relationship with China to boost its trade.
In a way, the Brazilian government wants to magnetize top Chinese companies to invest in their country. According to Stella Li, BYD global vice-president, this trade relationship will escalate investments, mostly in sustainable ventures, and will perk-up economic growth of the country. Li told Bloomberg, “This is a country we trust and this is a government we trust. I see a China-Brazil win-win position to build up a top level, very friendly relationship. And this is making a huge difference."
Back in April this year, Brazil’s President Luiz Inacio Lula da Silva dashed off around 15 agreements with China, worth 50 billion reais. For quite a long time, Brazil’s President has been requesting top firms in China to invest and set-up new production units in the country, which will help in generating direct and indirect employment.
The Bloomberg report also added that in the beginning, the new BYD plant will be furnished with a manufacturing capacity of 1,50,000 units, which in future could augment to 3,00,000 units. Ten years back, another Chinese automobile firm, Great Wall Motors announced to purchase a Daimler AG factory in Sao Paulo with an investment of 10 billion reais by 2032.
Since 2015, BYD has had its presence in Brazil when it set-up its first electric bus manufacturing unit in Sao Paulo. A few years later, the company commenced producing photovoltaic modules and lithium iron phosphate batteries in the same region. Although electric cars have a huge promising future in the Amazonas state, the major challenge is that it has to compete with ethanol powered cars, which is also clean and green energy. The national association of motor vehicle manufacturers Anfavea released a report, which stated that last year, sales of electric or hybrid vehicles in Brazil accounted for only 2.5 percent and is speculated to reach 7 percent of light vehicle sales by the end of 2030.
