BYD has completed its 5 Millionth EV/NEV vehicle from its Chinese assembly plants. BYD rejected plant locations in the UK and Germany. New plants are coming to Brazil. The vehicles will be Alien Invaders in many marketplaces.
BYD is seeking to open one or two EV-only production plants in Europe. Media reports had BYD consider, then look elsewhere, on taking over a former Ford plant. This was after acceptance by German local governmental units to assuming control of the Saarlouis facility. BYD did not see advantage in assuming a facility optimized for internal combustion engine vehicles.
In published comments, BYD executives said they considered the UK, and then BYD rejected the UK because of the separation from the EUC.
Major expansions in Thailand are in progress. BYD’s exploration of putting a large EV factory in India, with up to a USD$1B investment, with an Indian JV Partner (Megha Engineering and Infrastructure), was rejected for subsidies and governmental support. Plans have been proposed to build EV components and materials in Vietnam.
Now, BYD has announced a major commitment to Brazil. A prior transit bus factory was opened in 2015 for 450 workers in the city of Campinas (São Paulo region). A prior plant, in State of Amazonas, in Manaus, produces up to 18000 LFP battery modules per year for BYD buses.
A new factory complex, the first for BYD outside of China and Thailand, is estimated to cost Rls 3B (USD$624M). The new Brazilian plants will be built, in the State of Bahia, in the Camacari industrial park where Ford closed its operations in 2021. Brazilian governmental units were welcoming jobs to replace where Ford had closed. The three plants will eventually employ 5000 workers.
The first plant will continue operations to build transit buses and EV truck chassis. The second plant will be manufacturing for up to 150000 EV/NEV per year. The third plant is for vertical integration processing battery materials including lithium and iron phosphate. Lithium refinement outside of China is an important capability for deposits in South America.
Initial startup operations are scheduled for 2024 with eventual production expansions possible to 300000 EV/NEV per year.
BYD’s EV/NEV volume production will challenge traditional global manufacturers. BYD’s products have new technology, locally produced, and with local materials. EV/NEV’s earn sales directly reducing competitors’ revenues and profits. These actions of an Alien Invader are targeted at large (China/Asia, EU, South America) markets where competition is changing.
An extra benefit for Brazil-based production of EV’s would be the ability to export to the North American market without full-Chinese tariffs as content and value-added sourcing would reflect Brazilian manufacturing.
For more analysis and notes on BYD see http://www,ekalore.com
For more details on Alien Invasions into marketplaces see http://www.ekalore.com or contact us.
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