Chinese automaker BYD is set to construct a new factory in Brazil within the next three years, according to a report by Hong Kong's South China Morning Post.

This new facility will significantly expand BYD's current operations in Brazil, increasing production capacity from approximately 600 units over the past decade to as many as 7,000 units annually. The decision comes in response to rising demand for electric buses, which has exceeded the existing manufacturing capacity and prompted a reevaluation of the company's production strategy.

The project is anticipated to create hundreds of jobs and bolster exports throughout South America, with potential expansion into African markets also being considered. BYD stated that this expansion will strengthen a business segment that has been in place since before its entry into the passenger electric vehicle market.