BYD (HKG:1211, SHE:002594) allegedly brought hundreds of workers from China on irregular visas to construct a factory in Brazil, Reuters reported, citing a labor inspector.

Authorities rescued 163 of the workers in December from "slavery-like conditions," the report said.

The rescued workers, said to be recruited by BYD contractor Jinjiang, are about to leave or have left Latin America's largest country, the report said.

BYD could be fined for every worker found in slavery-like conditions, Reuters reported, citing Liane Durao, an inspector under Brazil's labor ministry.

BYD said it has already severed ties with Jinjiang, while a source close to the carmaker said the work visas were properly issued, and the employees flew voluntarily to Brazil, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)