BYD plans new Brazil bus factory as output scales from 2,000 to up to 7,000 units annually

BYD is planning a new Brazil bus factory in order to scale electric bus and truck production to 6,000–7,000 units per year, after demand outstripped current capacity.

According to the South China Morning Post, the Chinese manufacturer is preparing a significant expansion of its Brazilian commercial vehicle operations, driven by a sharp increase in electric bus orders and a backlog that has effectively filled production for the coming year.

In November, Brazil has committed, together with Mexico, to allowing only zero emission medium- and heavy-duty vehicle sales by 2040 at the latest, with an interim goal of at least 30% new sales by 2030. At the same time, an EUR 80 million Brazil E-Bus Credit Enhancement Fund has been established to accelerate the deployment of electric buses across Brazilian cities. São Paulo has already reached 1,000 electric buses in operation, following the ban on procuring new diesel buses already in 2022. The same group is at the same time planning expansion of European plant in Hungary, where BYD intends to produce the full product range.

BYD new Brazilian factory for up to 7,000 vehicles per year

BYD has assembled electric bus chassis in Campinas, São Paulo state, since 2015. Over nearly a decade, the facility produced around 600 units. Now, as reported by the newspaper mentioning statements by Marcelo Schneider, BYD Brazil’s director for commercial vehicles, BYD expects to manufacture around 1,200 chassis in 2026 alone, roughly doubling the cumulative output of its first ten years in Brazil.

The Campinas site has a nominal capacity of up to 2,000 chassis per year, but effective output isn reportedly lower due to the mix of configurations, including articulated buses. With 2026 production already fully allocated, BYD says it can no longer accept new orders, creating a bottleneck amid rising interest from Brazilian cities.

To address short-term constraints, BYD plans to add a temporary manufacturing operation near Campinas that could roughly double current capacity within a few months. In parallel, the company is preparing a purpose-built facility in São Paulo state, expected to open within two to three years, the South China Morning Post reports

BYD is planning a new factory in Brazil to expand electric bus and truck production after demand exceeded the capacity of its existing plant. The new BYD Brazil bus factory would cover about 180,000 square metres and replace the company’s scattered commercial vehicle operations in the Campinas region. At full scale, annual capacity could reach 6,000–7,000 electric bus chassis, with the site also designed to support local electric truck production. Employment in the segment could rise from around 100 workers today to as many as 800.

Beyond the domestic market, BYD sees Brazil as a manufacturing hub for exports across South America, particularly within Mercosur. Africa has also been discussed as a longer-term option once production and logistics are stabilised, the South China Morning Post noted.

The expansion builds on BYD’s broader industrial push in Brazil, reinforced in October by the opening of its large passenger vehicle plant in Camaçari, Bahia, a R$5.5 billion investment on the site of a former Ford factory, as planned back in 2023.