Disqualification of Brazilian Company's Bid, and Automaker BYD Starts Construction at Bahia Plant

The Brazilian company Lecar, which aims to produce electric cars, did not respond to inquiries regarding the decision

Recife

Chinese automaker BYD commenced construction of the first electric car factory in Brazil on Tuesday (5). The complex will be built from scratch in Camaçari, in the metropolitan region of Salvador, on the site formerly used by Ford until the pandemic.

The project is starting after the Bahia government disqualified a proposal from the Brazilian company Lecar.

CAMAÇARI, BA, 5-3-2024 - Celebratory ceremony marking the commencement of construction works for the BYD manufacturing complex. (Foto: Matheus Landim/GovBA ) - Matheus Landim/GovBA

Announcing the selection of BYD on Monday (4), the state administration stated in a note that "no other company presented an effective economic project that could demonstrate competitiveness and the need for selection, characterizing the non-competitive bidding."

On Monday, the government officially authorized the sale of the area located in the petrochemical hub of Camaçari belonging to the state of Bahia to the BYD company.

With the formalization, the Chinese giant was authorized to establish the manufacturing complex that will produce electric and hybrid vehicles. The company will also manufacture bus chassis and process lithium and iron phosphate, used in vehicle batteries. Lecar did not comment on the matter when approached.

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