BYD Co. has marked its place as the fourth-largest automaker globally, achieving impressive sales growth primarily through its innovative electric vehicles (EVs). The Chinese manufacturer, which produced its 10 millionth new-energy vehicle recently, has soared past competitors and is now aiming to capture more international market share.
Founded with the vision of transforming battery technology and transportation, BYD has stunned the automotive industry with its remarkable sales statistics. It sold 4.27 million vehicles in 2024, making it the first automotive company to reach the 10 million milestone for new-energy vehicles, as recognized by the World Car Awards, with BYD's executive vice president, Stella Li, receiving the prestigious World Car Person of the Year title.
“It's about the 110,000 research and development engineers at BYD who continue to come up with the latest technological advances reflected in our vehicles,” Li commented upon receiving the award.
Despite its success, BYD faces significant scrutiny over labor practices as it expands. Reports have surfaced concerning the conditions at its construction site for a new factory being built in Camacari, Brazil. Allegations suggest labor violations reminiscent of slavery, with numerous workers experiencing abusive contracts and poor living conditions.
According to Brazilian authorities, 163 workers were rescued from these dire circumstances, which included having their passports confiscated and being subjected to inadequate housing and working conditions. “The conditions constituted forced labor,” stated Matheus Viana, acting chief of Brazil’s Division of Inspection for the Eradication of Slave Labor.
The contractor managing the construction, Jinjiang Group, has vehemently denied these claims, labeling Brazilian inspections as “completely inconsistent with facts.” Yet, local labor officials argue BYD should be held accountable for the actions of its contractors. Viana noted, “BYD is directly responsible for the actions of its contractor on its site.”
While the average income for these workers exceeds the Chinese minimum wage—reportedly around $70 for a 10-hour shift—the contracts contain clauses deemed illegal under both Brazilian and Chinese labor laws. Workers were required to pay hefty deposits and had most of their earnings sent back home to China.
One distressed worker, rescued during inspections, revealed the harsh realities of life at the construction site, where dozens were crammed together with minimal basic amenities. Inspectors reported finding 31 workers living together without proper sanitation facilities.
Local authorities have taken action, freezing construction until conditions improve. Several representatives, including local union leaders and state politicians, voiced concerns about the legitimacy of this investment from BYD, emphasizing the need for proper treatment of all laborers involved.
... We must never bring development to our state at the cost of slave labor,” declared Alan Sanches, a state congressman.
BYD executives, including Alexandre Baldy, the senior vice-president for BYD Brasil, have publicly expressed their unease over the allegations and their commitment to making changes. Baldy emphasized, “This situation should never happen again,” pledging to work toward rectifying the wrongs identified at the site.
Nonetheless, the company’s plans are far more ambitious than simply fixing these issues. They intend to create up to 20,000 jobs when the factory is fully operational, thereby hoping to bolster local economies.
Yet, distrust lingers. A head of the metalworkers’ union, Julio Bonfim, has already warned BYD officials, “If any local workers miss out on job opportunities due to imported labor, we will strike before production even begins.
Importantly, Brazil serves as BYD's largest market outside of China, making public perception and labor practices pivotal to its longevity and success. The company is now at the crossroads of demonstrating responsible growth and ensuring Labour rights are honored, especially as it expands internationally.
With the rise of electric vehicles and increasing competition globally, how BYD navigates potential pitfalls including labor scandals will determine its reputation and longevity. While it holds the potential to transform the automobile industry, increasingly complex questions about corporate ethics and labor rights are looming large on the horizon.
BYD's commitment to re-evaluation of its operational practices is imperative. Out of the shadows of controversy, it must shine as not just the largest EV maker but also uphold its promise to ethical employment and corporate responsibility.