Brazilian prosecutors have filed a civil lawsuit against the Chinese electric vehicle manufacturer BYD and two of its contractors. They allege the companies were involved in human trafficking and subjected workers to conditions similar to slavery during the construction of a new electric vehicle factory in Bahia state. The Public Labour Prosecutor’s Office in Bahia began an investigation after receiving an anonymous complaint. Authorities subsequently rescued 220 Chinese workers who were reportedly trapped in abusive and degrading working environments.
Prosecutors are demanding a total of 257 million reais, which is roughly $45.5 million or £33.7 million, in damages from the three companies involved. Construction of the factory was suspended in late 2024 after serious labor violations came to light. Workers were found living in overcrowded accommodations with minimal hygiene and comfort. Many slept on beds without mattresses, and one toilet was shared by 31 people, according to the prosecutor’s office.
Investigators said the workers had their passports confiscated. They were forced to work under illegal contracts that required very long hours without rest days. Up to 70% of their wages were withheld, and workers faced heavy penalties if they tried to end their contracts early. The factory in Camacari, northeastern Brazil, was planned to start operations in March 2025. It would have been BYD’s first electric vehicle production site outside Asia.
Brazilian labor law describes “slave-like” working conditions as those involving debt bondage, coercion, and serious violations of human dignity. BYD has not made any new statements regarding the lawsuit. Previously, the company stressed its commitment to human rights and a strict zero-tolerance policy on labor violations. BYD is one of the world’s leading electric vehicle producers. According to industry data, BYD surpassed Tesla in European EV sales for the first time in April 2025.
Brazil is BYD’s most important foreign market. The company entered Brazil in 2015 with a factory producing electric bus chassis in São Paulo. These legal allegations could now threaten BYD’s expansion plans throughout Latin America.