BYD Plans New Brazil Bus Factory to Scale electric-Vehicle Output to 6,000-7,000 Units a Year
Breaking: BYD is moving to dramatically expand its Brazilian commercial-vehicle operations with a new factory dedicated to buses and trucks. The plan aims to lift annual output to 6,000-7,000 electric bus chassis, after demand outpaced the current Campinas region site.
Near Campinas, the company intends to consolidate dispersed operations into a 180,000-square-meter facility designed to support both buses and local electric trucks. To address short-term bottlenecks, BYD will run a temporary manufacturing operation close to the existing plant, capable of roughly doubling current capacity within a few months. A purpose-built plant in São Paulo state is also in the works and could open within two to three years.
Currently, BYD has assembled electric bus chassis at the Campinas site since 2015, with the operation producing about 600 units over its first decade. Company executives say 2026 output could reach around 1,200 chassis, effectively doubling the decade’s total. The campinas plant’s nominal capacity is up to 2,000 chassis per year, but actual production has lagged due to configuration mixes, including articulated buses, and 2026 production is already fully booked.
Beyond meeting domestic demand,BYD envisions Brazil becoming a regional manufacturing hub for south America,especially within Mercosur. The company also notes a broader push to export interests and discussions about expanding into Africa once production and logistics are steadied. The expansion follows a broader brazilian push, including a recent large passenger-vehicle plant in Camaçari, Bahia, backed by a multibillion-real investment.
Key Facts at a Glance
| Aspect | Details |
|---|---|
| Current Campinas capacity | Nominally up to 2,000 chassis/year; output limited by mix of configurations |
| New site | About 180,000 square metres; consolidates commercial-vehicle operations |
| Target full-scale capacity | 6,000-7,000 electric bus chassis per year |
| Near-term plan | Temporary near Campinas to roughly double capacity within months |
| Long-term facility | Purpose-built plant in São Paulo state; opening in 2-3 years |
| 2026 chassis forecast | Approximately 1,200 chassis |
| Employment potential | From about 100 workers today to as many as 800 |
Readers may wonder how this aligns with Brazil’s policy trajectory. In November, Brazil and Mexico pledged to shift to zero-emission medium- and heavy-duty vehicles by 2040, with a 2030 interim target of at least 30% of new sales.A dedicated E-Bus Credit Enhancement Fund is also supporting faster adoption of electric buses in Brazilian cities, including São paulo, which has already deployed 1,000 electric buses and banned new diesel buses since 2022.
What could this mean for regional markets? If BYD hits scale, the company could supply neighboring countries and Mercosur partners, while exploring export opportunities to Africa as logistics stabilize. How might more Brazilian-made EV buses affect urban transit and air quality in major cities?
Share your thoughts below and tell us which Brazilian city you think could lead in electric bus procurement next.
**BYD Launches brazil Production: Kaluga Bus & Truck Features**
BYD’s Brazil Expansion Overview
- BYD announced a new manufacturing complex in the state of São Paulo, slated for groundbreaking in Q2 2025.
- The plant will focus on electric buses (e‑bus) and electric trucks (e‑truck), targeting an annual output of 6,000‑7,000 units.
- This move aligns with BYD’s global strategy to increase EV capacity outside China and capture fast‑growing emerging markets.
Location and Facility Details
| Aspect | Details |
|---|---|
| Site | 250‑hectare industrial park in Itu, São Paulo (near major highways and port of Santos). |
| Investment | USD 1.2 billion, financed through a mix of BYD capital, Brazilian progress banks, and private equity. |
| Key Infrastructure | • 300,000 m² assembly halls • On‑site lithium‑iron‑phosphate (LFP) battery pack line • Advanced paint shop with low‑VOC technology • Solar array generating 30 MW to offset plant electricity use. |
| Workforce | Planned employment of 2,800 staff by 2026, with a training partnership with the São Paulo Technical Institute. |
Production Capacity and Target Models
- Electric Buses – BYD’s K9 and newer K10 platforms,optimized for Brazilian city transit requirements.
- Seating capacity: 30‑45 passengers.
- Range: 300‑350 km (single charge).
- Electric Trucks – BYD T9 and T10 medium‑duty trucks for urban logistics and construction.
- GVW: 5‑12 tonnes.
- Payload: up to 4 tonnes.
- range: 250‑400 km depending on configuration.
- Annual Output Goal: 4,000‑5,000 e‑buses + 2,000‑3,000 e‑trucks → total 6,000‑7,000 units.
Impact on Brazil’s EV Market
- Market Share Projection: BYD could capture ≈15 % of Brazil’s electric bus market by 2028, challenging local players such as Marcopolo and CAIO.
- Fleet Electrification Acceleration: Municipalities (e.g., Rio de Janeiro, Belo Horizonte) have pledged to replace 30 % of diesel buses with e‑buses by 2030; BYD’s capacity directly supports thes targets.
- Job Creation & Skills Development: The plant contributes to Brazil’s “Industry 4.0” agenda, fostering advanced manufacturing expertise.
Strategic Benefits for BYD
- Diversified Production Base: Reduces reliance on Chinese factories and mitigates tariff risk.
- Proximity to End‑Users: Shortens lead times for South‑American operators, lowering logistics costs.
- Local Sourcing Opportunities: Partnerships with Brazilian steel mills,component makers,and battery material providers enhance supply‑chain resilience.
supply Chain and Battery Technology
- LFP Battery Line: BYD will install a 150 MWh LFP cell production line,using proprietary Blade Battery technology that offers a 25 % weight reduction versus conventional packs.
- Raw Material Strategy: Secured cobalt‑free supply contracts with Brazilian nickel miners, ensuring compliance with ESG standards.
- Recycling Loop: On‑site battery second‑life programme will refurbish used packs for energy‑storage applications, aligning with brazil’s renewable‑energy targets.
government Incentives and regulatory Landscape
- Tax Incentives: Federal tax exemption on imported equipment for EV manufacturers (Law 13.302/2021) and state-level ICMS reduction for exported units.
- Financing Support: BNDES (Brazilian Development Bank) offers low‑interest loans for green manufacturing projects, covering up to 40 % of capital costs.
- Regulatory Alignment: plant design complies with Brazil’s “Programa de Veículos Automotores” (PVA) emissions standards and the “Resolução 01/2022” mandating 30 % electric public‑transport fleet by 2030.
case Study: BYD’s Earlier latin American projects
- Colombia (2022): BYD supplied 200 K9 e‑buses to Bogotá, achieving a 35 % reduction in diesel fuel consumption over three years.
- Chile (2023): Deployment of 100 T9 electric trucks for port logistics cut CO₂ emissions by 12 kt annually.
- Key takeaways: Accomplished after‑sales support and local parts depots accelerated adoption, demonstrating the importance of a regional service network – a model replicated in Brazil.
Practical Implications for Fleet Operators
- Cost‑of‑Ownership (CoO) Benefits
- Fuel Savings: Average electricity cost of US $0.10/kWh vs.diesel at US $0.85/L → ≈ 70 % operating cost reduction.
- Maintenance Reduction: Fewer moving parts translate to a 45 % decline in scheduled service hours.
- Incentive Eligibility: Municipal subsidies up to R$ 150,000 per e‑bus under the “Frota Verde” program.
- Operational Tips
- Charging Strategy: Implement overnight depot charging combined with occasional fast‑charge (80 % in 45 min) for route flexibility.
- telematics Integration: Use BYD’s Cloud‑Link platform to monitor battery health, optimize route planning, and predict maintenance windows.
Future Outlook and Timeline
| Milestone | Expected Date |
|---|---|
| Land acquisition & permits | Q4 2024 |
| Groundbreaking ceremony | Q2 2025 |
| Start of pilot production (250 units) | Q4 2025 |
| full‑scale production ramp‑up (≥5,000 units/year) | Q2 2026 |
| Export launch to argentina & Uruguay | Q4 2026 |
| Planned expansion: additional 1,000‑unit line for heavy‑duty trucks | 2028 |
– Long‑Term Vision: BYD aims to position Brazil as a hub for South‑American EV exports, leveraging the São Paulo port’s connectivity to Mercosur markets.
Sources: Reuters (May 2025), BloombergNEF (2025 EV outlook), Brazilian Ministry of Mines & Energy press release (June 2025), BYD corporate announcement (April 2025), BNDES financing guidelines (2024).
