China’s $620 million investment in Brazil will increase car production
Chinese car company BYD said it will invest $620 million in a new industrial complex to boost car production in northeastern Brazil. Basically, BYD wants to keep the car prices competitive by producing locally. That’s why this investment.
According to Reuters, BYD will build this industrial park in the Camacari industrial park in Brazil’s northeastern state of Bahia. There will be three factories in total. The land on which this state-of-the-art complex will be built, once housed the factory of US company Ford, which closed in 2021.
It is said in the news, if this complex is built, a competitive Chinese car market will be created in Brazil, employment will be given to 5 thousand people.
The Brazilian government’s push was behind BYD’s announcement to build a new electric car factory to replace Ford’s factory. They were encouraging BYD to set up this factory. Finally they came forward to build the factory.
BYD said in a statement that a factory here will only make chassis for buses and electric trucks. The second factory will target the production of 150,000 hybrid and electric vehicles per year. Apart from this, the main raw materials for making batteries, lithium and iron phosphate, will be processed in the third factory, they said.
Sources: BBC News