The growing controversy in the automaker's biggest overseas market has put a spotlight on immigrant worker conditions in the northeastern Brazilian state of Bahia. A deal with labor prosecutors involving BYD and the Jinjiang Group could be inked as soon as Jan.

Brazil has stopped issuing temporary work visas for BYD, the Brazilian Ministry of Foreign Affairs said on Friday, in the wake of accusations that some workers at a site owned by the Chinese electric vehicle producer had been victims of human trafficking.

BYD has been building the factory with an annual capacity of producing 150,000 cars initially in Brazil, the Chinese EV giant's largest overseas market, as part of plans to start production there.