New BYD centers to aid Brazil's growth

The plan of Chinese electric vehicle giant BYD to open two major research centers in Brazil will help boost local technology, sustainable development and talent pool while expanding its market share in Latin America, according to analysts.

BYD, one of the world's bestselling electric carmakers, will open its centers in Rio de Janeiro and Bahia, according to BYD Brazil. The Rio de Janeiro center will focus on research and development operations, while the automotive research and innovation center in Bahia would aim to transform the state into a leading technology hub. The centers are also set to help boost talent in the country.

The two BYD centers should help adapt and develop new technologies in Brazil, but research priorities will need to be carefully managed, said Ana Tereza Lopes Marra de Sousa, a researcher and professor of Brazil-China relations at the Federal University of ABC in Brazil.

The centers could evaluate how to develop technology locally, which would help modernize the country's industry and competitiveness, she said.

As it grows its market share globally, BYD has worked to shore up technological innovation in markets around the world, as well as sustainability while contributing to Brazil's development, said Melissa Cambuhy, a researcher at the Rio de Janeiro State University and a visiting researcher at the Chinese Academy of Social Sciences.

"This type of initiative is very fruitful and perfectly expresses the idea of win-win and mutual benefits defended by China in its foreign relations," Cambuhy said.

The centers should also boost Brazil's efforts to expand the electrification of transport, said Cambuhy.

According to the Brazilian Electric Vehicle Association, annual EV sales in the country rose 90 percent to 177,360 in 2024. The Sao Paulo state led sales with 56,820 EVs sold, which accounted for 32 percent of the country's total.

"Brazil uses electric cars and buses, which have increasingly gained space in the Brazilian economic agenda, given the interest in industrial and technological cooperation that Brazil has," said Cambuhy.

De Sousa said Brazil's urban population and increasing car ownership have pushed the government to put in place significant incentives for electrification.

According to recent government data, about 87 percent of Brazil's population live in urban areas, and nearly 80 percent of households own a car.

As they tap into a larger market share, BYD has contributed thousands of jobs to Brazil through automotive and sustainability projects such as EV factories.

The Chinese EV giant is already a market leader in Brazil, securing top spot in registrations of fully electric vehicles in August 2023, and has three factories in the country.

BYD's two plants in Campinas were built to produce electric buses and solar panels, while its third factory in Manaus Industrial Pole produces rechargeable batteries for EVs.

"We want to show that it is possible to combine robustness, technology and sustainability in a vehicle prepared for the challenges of the field and aligned with a low-carbon future," said Alexandre Baldy, senior vice-president of BYD Brazil.

De Sousa said Brazil also recognized that improving its infrastructure requires technological advancements. Foreign relations, such as Brazil's ties with China, also help promote technological development.

The writer is a freelance journalist for China Daily.