BYD’s Two-Continent Crisis: Flash Charging and Labour Allegations Collide Ahead of Earnings

BYD unveils a 9-minute charging EV and hypercar at the Beijing auto show, but faces forced labor allegations in Brazil and Hungary ahead of expected painful Q1 earnings.

The world’s largest electric-vehicle maker is staging its biggest-ever product blitz in Beijing, but the timing could hardly be worse. BYD is set to report first-quarter earnings on Tuesday, and the numbers are expected to be painful — even as the company unveils a nine-minute charging crossover and a 2,977-horsepower hypercar.

The Shenzhen-based automaker used the Beijing auto show to showcase a sweeping product offensive, headlined by the new Atto 3. The crossover can charge its battery from 10% to 97% in just nine minutes, offering up to 630 kilometres of range and 326 horsepower. It also debuts the DiPilot 300 driver-assistance system, powered by LiDAR — technology previously reserved for more expensive models.

Yet the glitz of the showroom floor is being overshadowed by a deepening reputational crisis. BYD faces allegations of forced labour on two continents, with investigations in Brazil and Hungary threatening to undermine its aggressive international expansion.

Blacklisted in Brazil, Scrutinised in Hungary

Brazil’s labour ministry placed BYD on its “lista suja” — the official registry of employers using slave-like labour conditions — in spring 2025. The designation followed a December 2024 raid at the company’s construction site in Camaçari, Bahia, where 471 Chinese workers were found without valid entry documents. Of those, 163 were freed from conditions described as akin to slavery. Tax inspectors also uncovered evidence that BYD had misled Brazilian immigration authorities.

The consequences are severe: companies on the list lose access to state-backed credit and face increased scrutiny from private lenders, including those financing auto dealers and vehicle buyers. A Brazilian court temporarily suspended the listing, arguing that the construction workers were not directly employed by BYD. The company had already reached a settlement with Brazil’s labour prosecutors in January, paying roughly 40 million Brazilian reais — about $8 million. But removal from the list requires two consecutive years without fresh violations.

In parallel, the NGO China Labor Watch published a report alleging labour abuses at BYD’s factory in Szeged, Hungary — Europe’s first BYD plant, set to begin series production this quarter. The facility represents a 6-billion-yuan investment and is designed to produce around 300,000 vehicles annually for the European market.

According to the report, Chinese migrant workers at the Hungarian site laboured seven days a week, up to 14 hours daily, without overtime pay. Wages were reportedly delayed by up to three months. High recruitment fees created a form of debt bondage. In February 2026, a Chinese worker died on the premises; Hungarian authorities are investigating.

BYD has pointed to the same subcontractor — Jinjiang Group — as the employer responsible in both Brazil and Hungary.

Home Market Bleeds as Exports Surge

The international labour scandals come at a delicate moment for BYD’s global strategy. The Szeged plant is central to bypassing the European Union’s 17% retaliatory tariffs on Chinese EVs. If European regulators intensify their focus on working conditions there, that strategy could face serious headwinds.

Meanwhile, BYD’s domestic sales have declined for seven consecutive months, as rivals like Geely and Leapmotor flood the market with cheaper models. The company’s response includes a plan to build roughly 20,000 fast-charging stations in China and another 6,000 abroad within the next 12 months, as announced by vice-chairwoman Stella Li on the sidelines of the Beijing show.

At the opposite end of the product spectrum, BYD’s luxury brand Yangwang unveiled the U9 Xtreme special edition, producing 2,220 kilowatts — roughly 2,977 horsepower. The car holds the world record for production vehicles with a top speed of 496 km/h. Just 30 examples will be built, finished in black and gold.

International sales are providing some relief. European deliveries jumped 270% in 2025 and rose another 156% in the first quarter of 2026. In the UK alone, BYD recorded more than 21,000 new registrations in Q1, capturing a double-digit share of the plug-in market. The company aims to generate half of all sales from outside China by 2030, after surpassing one million overseas sales for the first time in 2025. The target for 2026 is at least 1.5 million vehicles sold abroad.

Earnings Day: What to Expect

The board meets in Shenzhen on Monday, 28 April, to approve the unaudited first-quarter results. Analysts forecast revenue of around 134 billion yuan — a decline of more than 21% year-on-year. Earnings per share are expected to fall to 0.55 yuan, nearly halved from the prior-year period. The comparison is particularly tough: in Q1 2025, BYD had doubled its net profit.

The stock has already priced in much of the weakness. Since hitting a peak in May 2025, BYD shares have lost roughly 25%. Last year marked the company’s first annual profit decline in four years. The OTC-traded shares closed Friday at $12.99, after six consecutive losing days. Still, the stock remains up about 16% year-to-date — suggesting the market had already discounted the earnings slump.

Whether the reputational damage from Brazil and Hungary changes that calculus will become clear on Monday. For now, BYD is racing in two directions at once: unveiling cutting-edge technology in Beijing while defending its labour practices across three continents.