Brazil’s labour ministry has placed BYD Auto do Brasil on its “dirty list” following allegations tied to a factory construction project in Bahia.

The latest update to the register refers to 163 workers who labour inspectors said were “rescued” in December 2024 from a construction site in the north-eastern state.

Officials alleged “an alarming picture of precariousness and degradation”, claiming a contractor hired Chinese workers in poor conditions, including problems with bedding, sanitation and food handling.

Entries remain on the list for two years. While inclusion is not described as a formal penalty, it is intended to provide transparency.

Nikkei Asia reported that companies named can keep operating but may face closer checks in due diligence and reduced access to public financing.

The Brazilian government says the process includes due process and the right to defence.

In a statement made in December 2024, BYD said it has “zero tolerance for violations of human rights and labour laws” and that it was co-operating with authorities.

The company also said it had “terminated” contractor Jinjiang Construction Brazil, which has denied the allegations.

The dispute centres on a manufacturing complex in Camacari, Bahia, inaugurated in October at an event attended by President Luiz Inacio Lula da Silva.

BYD has described the project as a $1bn “factory of the future”, covering 4.6 million square metres and expected to employ 20,000 people, with an initial capacity of 150,000 units and plans for phased expansion.

The development comes as BYD increases its presence in Brazil, which has a population of more than 200 million.

The company reported sales of more than 100,000 vehicles in 2025, compared with over 76,000 a year earlier.

A BYD spokesperson later characterised the matter as a smear campaign, according to media reports cited by the news agency.