SA Panel: Automakers are blackmailing the government, says BYD

BYD's vice-president in Brazil, Alexandre Baldy, attacks the car manufacturers , who are considering going to court if Camex (Foreign Trade Chamber) does not approve, this Wednesday (30), a 10% tariff regime on imports of vehicles from the Chinese manufacturer – knocked down (CKD) or semi-disassembled (SKD).

In an interview with Painel SA, the executive states that the company will not be able to manufacture in the country if the government gives in to the "blackmail" of "foreign barons of the automobile industry."

Baldy states that the Chinese company's investments are provided for in a contract with the Bahian government, which granted tax incentives for the installation of the factory in Camaçari (BA), and that there is a progressive scale of local content up to a 70% rate of nationalization of the brand's cars.

The automakers are threatening to go to court if Camex approves a different regime for BYD. Do you see any chance of your request passing? This is a cry from the foreign barons of the auto industry, who have always viewed the Brazilian market as the property of each of these companies disguised as an association [Anfavea].

We signed a contract with the state government and received compensation. Any automotive industry begins with an assembly system. Ours is ready, and subsequent construction is for the end of the assembly system. It's impractical to have the same tax regime for a finished car and an [imported assembly] kit.

What bothers [Anfavea] is that we're competitive. We have a factory in Brazil, and we won't stop producing here with local components because that's contractual. For the first 12 months, we'll apply the assembly system. After that, local components are mandatory.

What's the risk if it's not approved? We've already invested R$2 billion, and we won't be able to manufacture it.

And what about your commitments to the Bahia government in this case? It would be a fortuitous case in which the government itself promoted the situation.

What exactly is BYD's request ? We're asking for a 10% import tax reduction until the factory enters full production in July 2026.

And after that? The general regime applies, and I'll have local content.

So it's a matter of competition ? That's a fact. How do you explain Toyota increasing the price of a car by 12% in the last 12 months without any kind of cost increase? It's a slap in the face to the people, because [the automakers] sell a low-quality and expensive product.

When we launched the Dolphin in 2023, our competitors cut R$100,000 off the price of a car. Brazilians no longer accept being fooled by this industry, which has always sought to protect itself by delivering the lowest possible quality. Brazilians want innovation, technology, affordable prices, and to be respected.

Now, what do they want? They want me to stop manufacturing anything and blackmail the government, claiming there are R$180 billion in investments. BYD led the way in this investment process. It was announced when President Lula visited China. He was in Shanghai with Mr. Wang Chunfu, owner of BYD, who announced R$3 billion in investments there, which were later increased to R$5.5 billion.

And how soon does BYD plan to move to full production in the country? I have no choice. In July 2026, there will be a local manufacturing regime with a very high content.

How much? By the end of the project, in 2028, it will reach 70%. That's almost the same deadline for the end of the ex-tariff regime. I'm not asking for something that doesn't exist.

When asked about the BYD executive's criticism, Anfavea said, via its press office, that it trusts the Brazilian government's decision to align with the Mover program, which encourages hybrid combustion engines.

"[We believe] that the Brazilian government will decide in line with its modern and exemplary industrial policy, Mover, which continues to attract a robust production process, which includes investments in research and localization of auto parts, respecting highly qualified jobs and guaranteeing legal security for the entire automotive chain," the association said in a statement.

"The credibility and commitment of the Brazilian automotive industry are non-negotiable and historic characteristics. We have weathered dozens of economic crises in the country, and we have always maintained our commitment to production and employment."

1980, Goiânia (GO) Graduated in Law from PUC (Pontifical Catholic University) of Goiás, he began his career in public life as Secretary of Industry and Commerce of Goiás, was a federal deputy, Minister of Cities, Secretary of Metropolitan Transport of SP and currently chairs the board of BYD in Brazil and is senior vice president of the automaker

With Stéfanie Rigamonti