Chinese automaker BYD will build a new factory in Brazil within three years, reports Hong Kong's South China Morning Post.

The plant will dwarf BYD's current Brazil operation, lifting output from about 600 units over a decade to as many as 7,000 annually. Rising demand for electric buses has filled existing capacity and forced a rethink of its manufacturing strategy.

The project is expected to create hundreds of jobs and support exports across South America, with Africa also being considered. BYD said the expansion strengthens a business segment that predates its move into passenger electric vehicles.