BYD signs a protocol to produce cars, trucks and buses in Bahia

By Redação AutoIndústria  | Translated by Jorge Meditsch

Bahia is close to having a vehicle manufacturer again after the Ford plant was closed in 2021. This Friday, 10/28, the state government announced the signature of an intention protocol with the Chinese BYD, which currently sells in the country imported electric automobiles with a marginal market share.

According to Bahia’s government, the company intends to have three plants in the state to produce bus chassis and electric trucks, electric and hybrid passenger cars and lithium and iron phosphate processing.

The project would demand resources of close to R$ 3 billion and, only in the implantation period, could generate about 1.2 thousand direct jobs, believe the authorities. Consulted about, BYD confirmed the protocol’s signature but said there are still pending issues under analysis.

The agreement was signed on Thursday, 10/27, with the construction scheduled to begin in June next year. According to the chronogram, two plants should start operations in October 2024 and the third in January 2025. The first would process lithium and iron phosphate with Brazilian raw materials to be exported to China.

Vehicle production also should begin in October 2024, with buses for the North and Northeastern regions and electric trucks. The first electric and hybrid passenger cars are in the last phase. The company also analyses importing finished vehicles through the port of Salvador before beginning to produce them in Brazil.

The document was signed by Rui Costa, governor of Bahia, the secretaries of Economic Development, José Nunes Soares, and Finances, Manoel Vitório, and Tyler Li, president of BYD do Brasil.

To build the plants, the manufacturer will count on fiscal incentives until December 31, 2032. BYD commits to training a specialized workforce and prioritize hiring companies established in Bahia for the civil construction, services and purchase of materials needed for the implantation and operation.

In Brazil since 2015

BYD arrived in Brazil in 2015, when it inaugurated its first 100% electric bus assembly line in Campinas, SP. In 2017, it opened a second unit in the same city to produce photovoltaic modules. In 2020, it began to operate at the Manaus Industrial Pole (PIM) to manufacture iron phosphate-lithium batteries.

The company promises to have 45 vehicle assistance points in Brazil by the end of 2022. In 2023, the idea is to have 100 dealerships and sell 13 thousand electric automobiles and light commercial vehicles.

BYD lineup currently includes the eT3 EV cargo van, the D1 EV mono volume, adequate for hauling companies, the seven-passenger TAN EV SUV and the electric sedan HAN EV. In November, the Song Plus DM-i Plus will arrive.