Chinese automaker BYD (HK:1211) (BYDDF) is facing accusations of making 163 Chinese nationals work in “slavery-like conditions” at a construction site for a factory owned by the company in Brazil’s Northeastern state of Bahia.
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More on the Accusations Faced by BYD
According to a statement made by Brazil’s Public Labour Prosecutor’s Office, more than 160 workers who were rescued were allegedly placed in a “degrading” environment, with their passports and wages withheld by a construction company.
These workers were hired in China by some other firm and then brought to Brazil. According to some reports, Brazilian authorities have halted the construction of BYD’s factory.
In response to the news, BYD said that it had conducted a “detailed review” of the living and working conditions of these subcontracted workers and had often asked the construction firm that had hired them to make improvements. The company has reportedly terminated its ties with Jinjiang Construction Brazil Ltd. and ensured that it will protect the rights of the subcontracted workers.
BYD’s Efforts to Boost its Business
BYD is taking several initiatives to boost its business, including expanding its international presence. Earlier this year, the company announced that it commenced the construction of its electric vehicle (EV) plant in Bahia, Brazil. This plant is expected to have an annual production capacity of 150,000 units, with operations expected to begin in March 2025.
The company’s decision to expand internationally comes amid intense competition in China. However, additional tariffs in key markets like Europe and Canada could hurt the international growth plans of BYD and other Chinese companies.
BYD sold 506,804 new energy vehicles (NEVs) in November 2024, marking the second instance of surpassing the 500,000 level. Notably, the company sold 198,065 passenger battery electric vehicles (BEVs) in November, reflecting a year-over-year rise of 16.4%.
Is BYD Stock a Buy, Sell, or Hold?
With nine Buys versus one Hold recommendation, BYD Co. scores a Strong Buy consensus rating. The average 1211 stock price target of HK$353.70 implies 31.2% upside potential. BYD’s Hong Kong-listed shares have surged 28% so far this year.
