BYD's new factory in Brazil, initially expected to start producing vehicles at the beginning of this year, will now be "fully functional" by December 2026.

This delay is due to an investigation into labour abuse, reported Reuters, citing Bahia state labour secretary Augusto Vasconcelos .

By the end of 2025, the factory is set to begin manufacturing cars from semi-finished kits.

Vasconcelos added: "A new schedule is being established so that by December 2026 the factory will be fully functional with the expectation of generating 10,000 jobs.”

The announcement coincides with Bahia Governor Jeronimo Rodrigues' visit to China alongside president Luiz Inacio Lula da Silva, where discussions about BYD's plans and the automotive industry are underway.

The factory aims for a "progressive nationalisation of the best-selling models in Brazil",  as stated by BYD.

Despite the setbacks, the company has seen significant growth in Brazil, selling 76,713 vehicles in the last year, a 328% increase from the 17,937 sold in 2023.

The investment in Brazil represents BYD's largest market outside of China, converting a former Ford manufacturing site into a complex with an annual capacity of 150,000 electric cars.

Julio Bonfim, head of the metalworker’s union of Camaçari, Bahia, cited labour investigations and heavy rains as reasons for the delayed timeline.

To start the assembly from imported Chinese kits, BYD plans to hire approximately 1,000 Brazilian workers this year, which is significantly less than the initial promise of 10,000 jobs.

Nevertheless, the company estimates the creation of 20,000 direct and indirect jobs throughout the project's duration.

BYD is also expanding its European footprint, with plans to introduce two new plug-in hybrid models in Germany as part of its broader strategy to diversify its product offerings on the continent.