Construction workers at BYD’s Brazilian EV plant treated like slaves?

Construction at BYD’s highly anticipated EV manufacturing plant in Salvador, Brazil, was abruptly stopped this week following alarming allegations from Brazilian authorities. According to the Public Ministry of Labor (MPT), 163 Chinese workers were found laboring in “slavery-like conditions” at the site.

The workers are not direct employees of the Chinese carmaker but belong to a subcontractor conducting construction works at the site. They had been hired in China by Jinjiang Group. BYD has since terminated its relationship with the contractor and pledged to assist the affected workers while cooperating with local authorities.

Labor violations

The Brazilian Ministry’s investigation revealed that workers were subjected to excessive hours, sometimes laboring seven days a week, and housed in degrading conditions. In addition, 107 workers reportedly had their passports withheld, limiting their ability to leave.

A labor inspector described the conditions as dangerous, stating that minimum safety standards were not met at the worksite. “Work was being conducted in a manner that violated human dignity,” she said during a press conference.

BYD, amid full international expansion, building plants worldwide, including Europe, quickly distanced itself from the controversy. In a statement, the company said it had severed ties with Jinjiang Group and was taking steps to ensure the workers’ safety, including relocating them to hotels and terminating their contracts.

The carmaker also confirmed that it had raised concerns with Jinjiang Group about working conditions at the site weeks before the revelations, urging improvements. However, the Chinese contractor’s failure to act prompted BYD to conduct an internal review, ultimately cutting ties.

‘Unjustly labeled’

Jinjiang Group has rejected the allegations, claiming that cultural misunderstandings and translation errors may have contributed to the controversy. In a social media post on Weibo, the company stated, “Being unjustly labeled as ‘enslaved’ has deeply hurt the dignity of our employees and the Chinese people.”

Jinjiang also released a video featuring workers expressing satisfaction with their jobs and attributing the passport issue to administrative procedures rather than pressure.

The controversy comes as BYD prepares to ramp up operations in Brazil, a key market on its global roadmap. Once operational, the Salvador plant is expected to produce up to 150,000 vehicles annually, catering to the region’s growing demand for electric cars.

Like the European plant in Hungary, its Brazilian counterpart is seen as a strategic move ahead of a planned tariff increase on a national level for imported EVs starting in 2026 in Brazil.

Brazilian labor authorities have not ruled out fines or sanctions as the investigation continues. Resolving this issue will be critical to BYD’s reputation as it seeks to establish itself as a top-ranking automotive brand.