Chinese electric-vehicle maker BYD has started the licensing process to double the annual capacity of its plant in Camacari, in the northeastern state of Bahia, from about 300,000 to 600,000 vehicles. The plan was laid out by the company's senior vice president in Brazil, Alexandre Baldy, in an interview with Reuters reported by G1 on Friday (23). At that scale, BYD would produce more in Brazil than Volkswagen and General Motors, owner of the Chevrolet brand, do today.

At the same time, the company is in the final stretch of construction and testing of its stamping, welding and painting shops, the stages that raise the local content of its cars. According to Baldy, the plant should begin 2027 above the 50% minimum share of locally made components required by regulation, clearing the way for regional exports. The company already holds orders for 50,000 units from Mexico and another 50,000 from Argentina, which it will be able to serve starting next year, the executive said.

The rush reflects demand. Monthly demand averages about 30,000 cars, Baldy said, while the production target for the end of 2026 is 25,000 a month.

"Our demand has averaged around 30,000 cars a month, which means we are leaving some 5,000 to 6,000 additional sales on the table," Baldy told Reuters.

In September, the brand registered 22,209 vehicles in Brazil, an 8.5% market share, according to company data cited by G1.

Investment and jobs

Investment in the plant has already passed 5.5 billion reais (about US$ 1 billion), and the Brazilian unit's cumulative 2026 sales are set to reach 200,000 cars this week, the executive said. The factory, inaugurated on October 9, 2025 on an industrial complex that once belonged to Ford, employs about 9,000 people and is expected to reach 10,000 by year-end. The stated goal is to become Brazil's largest automaker by sales volume by 2030. In the latest production data from Anfavea, the national automakers association, cited by G1, Fiat leads with 723,365 units, followed by Volkswagen (538,657) and General Motors (323,070).

The expansion also answers pressure from local industry groups, which criticized BYD's reliance on imported parts and temporarily low import tariffs. "We are working to start 2027 already past that point, with these stages in operation, so we are considered a local manufacturer," Baldy said.

For Brazilian auto parts suppliers, the jump in local content opens room in a supply chain that now serves a billion-real project with demand running ahead of supply. For consumers, higher output could shorten waiting lists for the brand's models and pressure prices at traditional automakers, especially in the entry-level segment.