Silke Mayr Brazilian authorities have filed a lawsuit against Chinese electric vehicle maker BYD and two contractors over claims of human trafficking and exploitative working conditions at a construction site in Bahia state. The Public Labour Prosecutor’s Office (MPT) in Bahia began its investigation in late 2024 after receiving an anonymous tip about abuse at the factory project in Camacari.
The probe uncovered that more than 200 Chinese workers were subjected to harsh labor conditions described as “slave-like.” Officials halted construction after finding overcrowded, unsanitary housing where workers slept on bare beds, with 31 people sharing one toilet. Authorities also discovered that many workers had their passports confiscated and were forced to work excessive hours without weekly rest.
The prosecutors are seeking 257 million Brazilian reais (approximately $45.5 million) in damages from BYD and its contractors. According to the MPT, some workers had up to 70% of their wages withheld and faced large fees to end their contracts. These conditions violate Brazilian laws that classify such exploitation as conditions “analogous to slavery,” which includes debt bondage and degrading treatment.
The Camacari factory was set to be BYD’s first electric vehicle production plant outside Asia, with operations planned to start by March 2025. BYD, short for Build Your Dreams, is one of the world’s largest electric vehicle manufacturers and recently surpassed Tesla in European sales. Brazil is a key market for the company, which opened its first local plant in São Paulo in 2015 to build electric bus chassis.
While BYD has not released a new statement regarding the lawsuit, it has previously affirmed a zero-tolerance policy on human rights violations and labor law breaches. This legal action now threatens the company’s rapid expansion plans in Latin America’s largest economy.
For the latest updates on BYD and the electric vehicle market, visit Financial Mirror. The ongoing investigation highlights the challenges global manufacturers face when expanding operations while ensuring ethical labor practices. Continued monitoring and transparency will be crucial as this story develops.