BYD Faces Backlash in Brazil Over Labor Exploitation Allegations

Recently, construction of a factory for Chinese electric vehicle (EV) manufacturer BYD was halted by Brazilian authorities due to allegations of slavery-like conditions faced by workers. Over 160 workers in Camaçari, Bahia, were rescued from these conditions, which the Public Labour Prosecutor’s Office characterized as degrading. Workers reportedly lived in poor environments where their basic rights were violated—their passports and wages were withheld by the construction company, Jinjiang Construction Brazil.

The factory, which was scheduled to be operational by March 2025, was set to be BYD’s first EV plant outside Asia. Investigations revealed disturbing living conditions; for example, workers were found sleeping on beds without mattresses, and sharing bathrooms among 31 individuals. The MPT noted that the conditions indicated a severe lack of dignity, aligning with Brazilian definitions of slavery-like practices, which include debt bondage and forced labor.

In response to the allegations, BYD stated that it had severed ties with the construction firm responsible and emphasized its dedication to complying with Brazilian laws. The company relocated the affected workers to hotels and claimed to have previously requested improvements in the living conditions from the contractor multiple times.

BYD, known as Build Your Dreams, is a leading player in the EV market and recently outsold Tesla in electric vehicle sales. With an objective to expand its presence in Brazil, the company had already invested heavily in the region, opening its first factory in São Paulo in 2015. The broader landscape for EV manufacturers is challenging, particularly due to geopolitical tensions, as markets in the US and EU address perceived inequities related to Chinese governmental support for its domestic car manufacturers.