Brazilian authorities have taken decisive action against the construction of a factory for the prominent Chinese electric vehicle manufacturer, BYD, in the northeastern state of Bahia. The Public Labour Prosecutor's Office (MPT) reported that over 160 workers were rescued from environments considered comparable to “slavery.”
These workers were allegedly subjected to a degrading lifestyle, as their passports and salaries were reportedly withheld by the construction company, Jinjiang Construction Brazil. Upon inspection, it was revealed that the workers lived in substandard conditions, including sleeping on mattress-less beds and sharing bathrooms with up to 31 individuals. Prosecutors highlighted the dismal living conditions as “alarming” and characterized the situation as involving forced labor due to withheld wages and substantial costs tied to contract termination.
In response to the serious allegations, BYD released a statement asserting that it has severed ties with the implicated firm and emphasized its dedication to upholding Brazilian laws. The new factory was projected to commence operations by March 2025, marking BYD’s first manufacturing site outside Asia.
Affected workers are now being housed in hotels, according to BYD, which claims to have conducted extensive reviews of the living and working conditions for subcontracted laborers. The company has allegedly requested improvements from the construction firm multiple times.
With a strong presence in Brazil, BYD has become one of the world’s largest electric vehicle vendors, surpassing even Elon Musk's Tesla in sales during late 2023. In recent years, it has made significant investments in the Brazilian market, including a $484.2 million plan to establish an EV production facility.
The landscape for EV sales is changing, as international markets like the US and EU impose tariffs on Chinese imports, escalating the global trade tensions surrounding electric vehicle production.
