Chinese electric vehicle maker BYD plans to double annual production capacity at its Brazil plant to 600,000 units and raise the share of locally sourced parts to more than 50 percent. It aims to develop Brazil into its largest production hub in South America, expanding not only local sales but also exports to neighbouring countries.

On Oct. 27, local time, Cleantechnica reported that BYD is pursuing permits to expand annual production capacity at its Camacari plant in Brazil's Bahia state to 600,000 units from the previously planned 300,000. It did not disclose when the expansion would be completed.

Alexandre Baldy (알렉상드르 발디), BYD Brazil's senior vice president, said it would raise the local parts sourcing ratio to more than 50 percent by early next year. The strategy aims to meet regulatory requirements to be recognised as a local automaker and secure a base for exports to South American markets.

BYD opened the Camacari plant in October last year on the site of a former Ford factory. Construction and test runs of its press, welding and paint facilities are in the final stages, and the company plans to raise monthly output to 25,000 units by the end of this year.

Local demand is exceeding production targets. Baldy said Brazil's average monthly demand is about 30,000 units, causing it to miss an additional 5,000 to 6,000 potential sales each month.

In September, BYD posted 22,209 new vehicle registrations in Brazil, taking an 8.5 percent market share. The company aims to become Brazil's top automaker by 2030.

BYD is also seeking to expand exports. It has secured orders for 50,000 vehicles each in Mexico and Argentina and plans to supply them from next year by increasing the local parts sourcing ratio. Colombia and Uruguay are also included among future export destinations.

Brazil's auto industry has criticised BYD for relying on imported parts and temporary tariff benefits. BYD plans to address such concerns and strengthen competitiveness by expanding its local supply chain and production facilities.