Chinese laborers at BYD’s Brazil plant were discovered in “slave-like conditions.”

Brazilian authorities have uncovered 163 Chinese workers employed in ‘slavery-like conditions’ at a construction site for an electric vehicle (EV) factory owned by Chinese automaker BYD in Bahia state, the South China Morning Post reported on Tuesday. Officials said the workers were hired in China and brought to Brazil irregularly by another firm, violating labour laws.

The workers endured excessive hours, often labouring seven days a week in dangerous conditions, and lived in degrading accommodations, Brazil’s labour prosecutor’s office said. Many had their passports confiscated, and some required permission to leave their lodgings.

Even the minimum safety conditions were allegedly not being met in the work environment, violating Brazilian laws designed to safeguard human dignity and protect against forced labour and debt bondage.

BYD’s response
Chinese automaker BYD has severed ties with its contractor, Jinjiang Construction Brazil Ltd, and pledged to safeguard the rights of all subcontracted workers. The company announced plans to relocate the workers to hotels.

“BYD Auto do Brasil reiterates its commitment to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity,” said Alexandre Baldy, senior vice-president of BYD Brasil.
The Shenzhen-based automaker also confirmed conducting a review of working and living conditions for subcontracted employees in recent weeks and had previously asked its contractor to improve conditions.

Chinese EV push into South America
Brazil, the world’s sixth-largest car market, has been a critical market for BYD’s expansion in South America. According to a report by Bloomberg earlier this month, more than 66,000 of its plug-in electric and hybrid vehicles sold in Brazil this year.

However, the discovery of forced labour threatens BYD’s reputation as it seeks to establish a foothold in global markets. The incident also highlights the growing challenges Chinese automakers face as they expand internationally.

The Latin American country has become a key testing ground for Chinese EVs, with companies such as BYD and Great Wall Motor relying on the market for growth amid rising protectionism in other major economies. Yet, this year, over 70,000 unsold Chinese EVs have congested Brazilian ports, highlighting supply chain and market demand issues.