Chinese manufacturer BYD lands on Brazil’s labour ‘Dirty List’ after factory probe

Brazil’s Labour Ministry has added Chinese automaker BYD to a “dirty list” of companies that have allegedly subjected workers to conditions similar to slavery. A factory project crucial for the South American market haunts the Chinese car manufacturer due to its mention in the list.  Updated Monday in Brazil, the list now names the electric vehicle leader’s local arm, BYD Auto do Brasil. It states that close to 163 workers were involved the same workers who were once rescued by labour enforcement officials from a factory construction site in the Northeastern state of Bahia in December 2024.

Officials have alleged that the factory had precarious labour conditions and serious degradation at the site, where a contractor was hired to carry out construction and had further brought in Chinese workers.

Brazil has mentioned that inclusion on the list, which lasts for three years, is not a sanction but a means to ensure transparency. A government website states that inclusion happens only after procedures in which companies are guaranteed due process and the right to defend themselves. Those on the list are free to continue operating but may face increased scrutiny in due diligence and restricted access to public financing.

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The inclusion on the list could impact BYD’s reputation in a key target market of over 200 million people, where it had started to gain traction. In December, BYD had said that it sold more than 100,000 vehicles in Brazil in 2025, up from more than 76,000 the previous year.

Chinese state news agency Xinhua had detailed earlier how BYD was witnessing rising sales in Brazil- "BYD sold 74% more vehicles in Brazil in the first quarter, versus last year, reaching a record high. Citing BYD's Brazilian unit, it said the increase reflects growing acceptance of Chinese EVs, along with expanded production capacity at the automaker's plant in Bahia".

The factory in question is located in Camaçari, Bahia. In 2024, the labour prosecutor’s office in Bahia published an extensive report on the construction site. The taskforce alleged that there were “serious infrastructure and hygiene problems,” including insufficient bedding and toilets, along with improper food handling.