BYD Contractor Denies Labor Violation Claims at Brazilian Factory Site

Chinese electric vehicle manufacturer BYD’s contractor Jinjiang Group has strongly refuted allegations of “slavery-like conditions” at its Brazilian factory construction site, characterizing the claims as a misunderstanding stemming from translation and cultural differences, reports Reuters. The controversy emerged after Brazilian labor authorities reported finding 163 Chinese nationals working under concerning conditions at BYD’s facility in Bahia state.

The incident has cast a shadow over BYD’s ambitious expansion plans in Brazil, where the company is constructing what will become its largest overseas manufacturing facility. The plant, located in Camaçari, is designed to produce 150,000 vehicles annually when operations commence in 2024 or early 2025, marking a significant milestone in BYD’s international growth strategy.

In response to the allegations, Jinjiang Group issued a statement on Weibo defending its practices, asserting that claims of worker exploitation “seriously hurt the dignity of the Chinese people.” The company explained that certain practices, such as holding workers’ passports, were misinterpreted – stating that 107 workers had voluntarily submitted their documents for assistance with temporary Brazilian identification processing.

BYD has moved swiftly to address the situation, announcing it has terminated its relationship with the contractor responsible for hiring the workers. The company emphasized its commitment to working with Brazilian authorities to resolve the matter. Meanwhile, Chine‘s foreign ministry spokesperson Mao Ning confirmed that the Chinese embassy in Brazil is actively engaged with local officials to verify and address the situation.

The controversy comes at a crucial time for BYD’s Brazilian operations. The pays represents BYD’s largest overseas market, and the timing is particularly sensitive as Brazil prepares to increase tariffs on imported EVs from 18% to 35% in July 2026 – a policy shift that underscores the importance of establishing local manufacturing capabilities.

A vidéo released by Jinjiang showed Chinese workers at the site reading a jointly signed statement expressing satisfaction with their working conditions. “We are very happy to come to Camaçari to work,” stated one unidentified worker, who emphasized their commitment to completing “the biggest new energy vehicle project in Brazil.”

The incident highlights the challenges global automakers face as they rapidly expand manufacturing operations internationally, particularly regarding labor practices and cultural differences in emerging markets. It also underscores the increasing scrutiny of working conditions in the electric vehicle supply chain as the industry experiences unprecedented growth.