Chinese automaker BYD Co. (BYDDY) is expanding its geographical presence by allocating about $620 million for the construction of a large industrial complex in northeastern Brazil. The decision to build its first electric vehicle (EV) plant outside of Asia is driven by the growing global demand for BYD’s vehicles.
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With the establishment of this complex, BYD aims to boost local production and expects to offer its vehicles at more competitive prices.
New Industrial Complex Details
The complex will comprise three factories and is likely to commence production in the second half of 2024. Notably, this expansion is expected to generate over 5,000 job opportunities for the local workforce.
Among the three factories in BYD’s new complex, one will be dedicated to the production of chassis for electric buses and trucks. In simple terms, a chassis is a basic framework or structure that forms the foundation of a vehicle. In the second factory, BYD’s focus will be on producing plug-in hybrid and pure-electric vehicles, with a targeted production capacity of 150,000 units annually.
Lastly, the third unit will be specialized in the processing of lithium and iron phosphate battery materials. BYD plans to take advantage of local port resources and capitalize on the increasing worldwide demand for new energy products.
Is BYDDY a Good Stock to Buy?
BYD stock has gained 3.5% over the past five days. The company has managed to attract the attention of investors. Recently, it took China’s EV market competition a notch up with the launch of a new premium electric SUV, the Denza N7.
Furthermore, BYD reported impressive data for June as it delivered 253,046 new energy vehicles (NEV), up 89% year-over-year. It also outperformed its peers, including Tesla (TSLA), Li Auto (LI), and NIO (NIO), in total deliveries for the second quarter of 2023. Importantly, the company’s latest move to expand its international presence will further boost investors’ confidence in the stock.
