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BYD Announces It Will Double Production at Its Camaçari Plant, Aiming for Export to Mexico and Latin America – See the Details of This Strategic Move.
The Chinese automaker BYD plans to double production at its plant in the municipality of Camaçari, Bahia, to make this location a true export hub for Mexico and Latin America. The Bahia factory is already operating and is preparing to increase production from 300,000 to up to 600,000 vehicles per year.
The plan aims to leverage trade agreements from Brazil and circumvent import tariffs affecting vehicles coming from China.
The reason? To ensure BYD greater international competitiveness, expanding its operations outside China and consolidating its presence in Latin America.
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Global Strategy and Choice of Camaçari
BYD chose Camaçari precisely because of its strategic location and the existence of trade agreements between Brazil and Mexico that allow for tariff-free exports.
According to Alexandre Baldy, senior vice president of the brand in Brazil, “the Camaçari plant is fully capable of becoming an export hub for all of South America and, in the future, potentially for other continents, such as Europe.”
This vision reinforces that the factory serves not only the Brazilian market but is a central part of BYD’s export strategy.
In addition, BYD’s plant in Camaçari already began operating and was inaugurated in October 2025 as the largest electric vehicle factory in Latin America, with an area of over 4.6 million m² and technological reference.
All this context favors scaling the location for export.
BYD Production Numbers: From 300,000 to 600,000
Initially, BYD’s factory in Camaçari had the capacity to produce around 300,000 vehicles per year.
Now, with the brand’s announcement on October 9, that potential will double, reaching approximately 600,000 annual vehicles.
This ambitious increase requires investment and an accelerated schedule of construction and equipment.
To enable this leap, BYD reports it is investing around R$ 5.5 billion in the Camaçari complex, covering not only assembly but also a technology center for development and innovation.
Therefore, doubling production is not just about adjusting volume – it involves structural expansion of the factory.
Export and Tariff Context in Latin America
The reason BYD intends to double production at its Camaçari plant is closely tied to export.
In countries like Mexico, which adopt protectionist policies for Chinese vehicles, importing cars directly from China may incur up to 50% tax.
Meanwhile, vehicles leaving Brazil for Mexico can benefit from tariff-free agreements through the treaty in effect since 2002 between Brazil and Mexico for parts and vehicles, extended to buses and trucks in 2023.
Thus, by producing in Brazil, BYD avoids tariff barriers, makes the production chain more efficient for export, and reduces logistical costs.
In other words: doubling production in Camaçari is directly linked to the strategy of strengthening export to Mexico and Latin America.
Impacts for Bahia, Employment, and BYD’s Production Chain
BYD’s operation in Camaçari brings a positive impact to the Bahia region. The factory creates direct and indirect jobs.
It also strengthens the supplier chain and modernizes the local automotive industrial park.
Furthermore, by making Camaçari an export hub, BYD enhances the state’s international reach, potentially expanding investment and export flows.
This reinforces the role of the factory in the municipality not only as production for Brazil but as a factory geared toward the global market.
Market Scenario and Brand Growth
In Brazil, BYD is already experiencing significant growth. From January to September 2025, the brand’s sales totaled 77,198 units, a 50% increase compared to the same period in 2024.
The brand dominates the segment of electrified and hybrid cars in the country.
With the larger scale of the Camaçari plant, BYD aims not only to maintain this performance but also to elevate its presence in the overall Brazilian automotive market and in exports.
Source: Bahia Econômica
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