Chinese electric vehicle maker BYD to build its first plant outside Asia in Brazil

Chinese electric vehicle maker BYD will invest three billion reais (13.5 billion Czech crowns) in Brazil to build a plant that will be its first outside Asia. The company, which is competing with US automaker Tesla for the title of the world’s largest electric vehicle maker, is seeking to expand its geographical reach amid growing global sales of electric vehicles, Bloomberg reported.

The automaker plans to build a manufacturing complex in the northeastern state of Bahia. The plant will produce hybrid and electric vehicles. It will also include a facility focused on chassis for electric buses and trucks, as well as processing lithium and iron phosphate for international markets. Production is expected to begin by 2024.

The decision follows efforts by the Brazilian government to deepen ties between Latin America’s largest economy and China and encourage major companies to invest in the country. President Luiz Inácio Lula da Silva visited Chinese President Xi Jinping in April. On that occasion, 15 agreements were signed covering investment pledges by Chinese companies worth around 50 billion reais (225 billion Czech crowns).