BYD's Big Adventure in Brazil

Author | Zhou Zhiyu

Editor | Zhang Xiaoling

An old era has come to an end.

Brazil, the largest automotive market in South America, which has been firmly dominated by European and American giants such as Fiat, Volkswagen, and General Motors for half a century, has welcomed Chinese automotive giants.

On July 1st local time, in Camaçari, Bahia, Brazil, a BYD Seagull rolled off the production line of its factory. This marks a significant milestone in the phased achievements of its largest passenger vehicle factory overseas. For the grand narrative of "Chinese automobiles," it is a profound and complex milestone in its journey of globalization.

According to BYD's plans, this passenger vehicle factory will have an annual production capacity of 150,000 complete vehicles in its initial phase, with production lines covering both battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) to meet the diverse needs of the Brazilian market as well as Argentina and Uruguay in Latin America.

It is worth noting that the first vehicle off the line signifies an important phased achievement in the construction of the factory, but it does not mean that the factory is fully completed or has entered large-scale production. The factory is still under tight construction, indicating that BYD is steadily advancing its localization production layout in Brazil according to its phased construction and production operation rhythm.

BYD portrays its significant investment in Brazil as a joint venture towards the future. As the mastermind behind BYD's globalization strategy, its Executive Vice President and CEO for the Americas, Li Ke, has given this expansion a grand and warm annotation.

She emphasized the commitment and integration with the local community. The Camaçari factory was formerly a factory that had long been closed by Ford Motor Company. Li Ke stated, "We are bringing new life to this factory, and we will hire many former Ford employees. We will provide them with new training and new skills so that they can work better in our brand-new factory."

It is hard to imagine that three years ago, BYD's passenger vehicle sales in Brazil were only 260 units, but by 2024, this number is expected to soar to over 76,000 units, a year-on-year increase of over 328%. By May 2025, it is projected to capture over 90% (92.16%) of the pure electric market share, and BYD has undoubtedly crowned itself as the "new king" of Brazil's new energy market.

BYD's story in Brazil is far from a simple "product success." It resembles a revelation about patience, bold bets, and deep localization, profoundly revealing that after bidding farewell to barbaric growth, the globalization of Chinese automobiles is entering a more challenging and imaginative new stage.

The story of BYD in the Brazilian market began ten years ago. In 2014, BYD entered Brazil, not through passenger vehicles, but through electric buses and solar panels.

During a time when passenger vehicle companies were busy with export trade, BYD chose a heavier and slower path. It produced electric bus chassis in Campinas, assembled power batteries in Manaus, and even supplied "cloud rail" trains for the subway line in São Paulo. These seemingly unrelated businesses to passenger vehicles.

Through these business layouts, BYD gained a deep understanding of local regulations, labor policies, supply chain ecology, and the political and business environment, establishing brand trust through public transportation and clean energy projects. Before truly investing heavily in building passenger vehicle factories, BYD had already validated its localization management and operational capabilities through several small factories When BYD's Tang EV was officially launched in Brazil in 2021, it was not a rash "outsider," but rather an "old friend" that had coexisted with Brazilian society for seven years. The Seagull and Song Pro, which rolled off the production line first at the factory, had already achieved excellent sales results in the Brazilian market in the early stages.

Beyond products, BYD has gradually established a complete ecosystem in Brazil. By rapidly laying out a nationwide dealer network and charging facilities, and even creating its own ocean transport fleet, it provides users with a complete experience and assurance that goes beyond the products themselves.

In the face of the pain point of insufficient charging facilities in Brazil, BYD did not wait for the market to mature but took the initiative. By collaborating with local companies to launch the "BYDRecharge" charging network, it integrated thousands of charging stations and introduced convenient features such as "automatic charging," transforming the biggest barrier to car purchases—charging anxiety—into its core advantage.

BYD has rapidly expanded a dealer network covering all state capitals in Brazil and plans to increase the number of stores to 240 by the end of 2025.

However, BYD is facing an unprecedentedly complex situation in Brazil, where past successful experiences are insufficient to cope with new challenges ahead.

Under the lobbying of traditional car companies such as Fiat and Volkswagen, which have operated in Brazil for decades, they successfully pushed the government to gradually raise import tariffs, planning to fully restore the tax rate to 35% by July 2026. This has made the establishment of local factories in Brazil urgent for BYD, as every step of its localized production must race against time.

In addition, BYD's competitors include not only local Brazilian brands but also ambitious Chinese brands like Great Wall Motors (GWM), which are fiercely competing in the Brazilian market.

This means that to truly solidify its position, BYD must demonstrate wisdom and resilience far beyond the past. It needs to skillfully navigate the political games with the local industry and maintain its leadership amid fierce competition with peers.

In the first half of this year, BYD set a historic sales record of 472,100 units in overseas markets, making the goal of achieving 800,000 units in overseas sales for the year seem less daunting. This figure is the most direct reflection of BYD's globalization strategy and heralds that the Chinese automotive industry is integrating into the world with unprecedented depth and breadth.

The Brazilian market is one of the most representative and enlightening pieces of this global puzzle. Behind the exponential growth, BYD must transform from an "outsider" into a "local enterprise" deeply integrated into local regulations, culture, and industrial chains.

For Chinese car companies like BYD, every investment in an overseas factory is a heavy asset gamble; every negotiation with local unions, governments, and supply chains is a test of cross-cultural management wisdom. The real challenge for BYD and all Chinese brands is no longer whether they can produce world-class products, but whether they can successfully navigate the complexities that come with "success" in different global markets. This is the ultimate question that will determine how far and how steadily they can advance on their globalization path