- BYD Camacari Plant begins pilot production this August.
- Brazil expands tariff-free imports supporting regional vehicle manufacturing.
Chinese automaker BYD has revised the development schedule for its Camacari manufacturing facility in Brazil, confirming that pilot production using localized manufacturing processes is scheduled to commence in August. Full-scale production of vehicles intended for commercial sale is now targeted for the end of 2026. The updated timeline was reported by local media on July 16 and reflects the company's continued progress toward establishing a fully localized manufacturing operation in the country.
Since beginning operations in October 2025, the Camacari plant has assembled approximately 100,000 vehicles from semi-knocked-down (SKD) kits. The facility is now entering its next development phase by preparing to introduce additional manufacturing processes, including stamping, welding and painting. These additions are expected to increase the level of localization while strengthening production efficiency and supporting the long-term manufacturing strategy for the region.
Camacari Facility Production Capacity and Export Strategy
The Camacari complex has been designed with an initial annual production capacity of 150,000 vehicles, while future expansion plans could raise total capacity to 300,000 units annually. BYD also confirmed that the facility will become its primary export hub for Latin America, supporting regional demand from strategically selected markets as manufacturing operations continue to expand.
Planned Initial Vehicle Export Allocation
The company intends to begin exports from the Brazilian facility with a combined total of 100,000 vehicles. Initial shipments will be directed to Argentina and Mexico, with both destinations expected to receive equal allocations during the first export phase.
BYD Initial Export Distribution from Camacari Plant
| Destination Market | Planned Vehicle Allocation |
|---|---|
| Argentina | 50,000 Units |
| Mexico | 50,000 Units |
| Total | 100,000 Units |
Brazil Introduces Temporary Duty-Free CKD/SKD Import Quota
The government of Brazil has approved a temporary duty-free import quota covering CKD and SKD kits for electric vehicles and hybrid vehicles. The measure allows tariff-free imports valued at up to USD 463 million for a maximum period of six months beginning on July 1, 2026. The policy is expected to support manufacturers expanding local production while facilitating a smoother transition toward higher levels of domestic manufacturing and localization.
Frequently Asked Questions
When will BYD begin full commercial vehicle production at its Camacari plant?
BYD plans to start full commercial vehicle production at its Camacari facility by the end of 2026 after launching pilot production with localized manufacturing processes in August. The plant has already assembled 100,000 vehicles from SKD kits and is adding stamping, welding and painting operations to increase localization. Once fully operational, the facility will support domestic demand in Brazil while also serving as BYD's export hub for key Latin American markets, including Argentina and Mexico.
What is Brazil's new duty-free CKD/SKD import policy for EV and hybrid manufacturers?
Brazil has introduced a temporary duty-free import quota for CKD and SKD kits used in electric and hybrid vehicle production. The program covers tariff-free imports worth up to USD 463 million for a period of up to six months beginning July 1, 2026. The measure is designed to assist manufacturers that are expanding localized production by reducing import costs during the transition toward more comprehensive domestic manufacturing operations.
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