As legacy of Ford fades in Brazil, China’s BYD looks to extend global lead in EV sales

Brazil’s policies are driving EV sales and production, according to Adalberto Maluf, national secretary of Urban Environment and Environmental Quality.

In an interview with The Associated Press in Brasilia, Maluf cited incentives enacted in 2024 that favor electric motors, tax reductions for lower-emission cars and a new air quality program with nationwide monitoring and pollution reduction goals.

Brazil is the one of the top 10 emitters of greenhouse gases, contributing around 3% of global emissions, according to nonprofit Climate Watch. However, pollution from energy does not play a big role, as about half of greenhouse gas emissions come from deforestation, mostly in the Amazon, followed by agriculture. About 85% of the country’s electricity comes from renewable sources.

For Maluf, who worked for almost nine years at BYD Brazil, the country is attractive to Chinese electric car makers for reasons ranging from the size of its market to the presence of several auto parts suppliers and the strong political relationship between the two countries.

“Brazilians have no geopolitical issues with China. If you ask, ‘Are you against China?’ most people won’t have a strong opinion about it,” he said.

“In the U.S., however, they do, because it’s part of the president’s rhetoric,” he added, referring to President Donald Trump’s frequent comments about China “ripping off” America on trade.

It’s unclear what is next for BYD factory

Since the raid, BYD has not allowed press visits inside its Camacari premises, citing concerns about trade secrets. It’s unclear if BYD is still on track to turn the former Ford site into its largest plant outside China by the end of 2026.

When AP journalists visited in March for several days, they saw only a few construction workers at the large site. And one day, while standing on the street adjoining the premises, three BYD guards, one who kept his hand on his gun, incorrectly accused the journalists of flying a drone inside factory boundaries and demanded to see identification. Minutes later, security guards on motorcycles approached, honking and ordering the journalists to stop filming workers.

BYD said its security guards acted appropriately and declined to answer other questions about its operations in Brazil.

While the future of the factory is unclear, the raid and the presence of Chinese workers have gotten the attention of labor unions.

“The Metalworkers Union will not tolerate Chinese workers on the production line. If that happens even in the beginning of the production, we will call for a work stoppage,” Júlio Bonfim, the union president, told AP. Bonfim added that there were no objections with BYD employing Chinese technicians and managers, but the factory floor must employ only Brazilians. It was unclear if BYD had agreed to that.

Despite the raid and seemingly slow pace of construction, in the Camacari region the shift from Ford to BYD is increasingly visible. A three-decades-old dealership for the American brand named Indiana, in tribute to the U.S. state, now shares space with a BYD reseller, Mandarim. A local hotel started distributing instructions specifically to Chinese guests, asking them not to hang washed clothes in common areas. And a state lawmaker introduced a bill to rename the city’s Henry Ford Avenue, where the plant is located, to BYD Avenue.

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Originally Published: April 14, 2025 at 5:02 PM PDT