BYD offers full refunds after selling 1,265 vehicles with wrong model years

BYD has committed to providing full refunds to 1,265 customers in Australia after the electric vehicle manufacturer admitted to selling 2025-built vehicles marketed as 2026 models. The discrepancy originated from an administrative oversight where the company used the dates the vehicles left the factory rather than the actual dates they were manufactured.

While the manufacturer maintains the vehicles are mechanically identical to the 2026 models customers expected, the error has triggered frustration among owners regarding potential impacts on resale value and insurance. Initially, the company attempted to resolve the issue by offering a $1,100 payment, which corresponded to the dealer delivery fee. This offer faced significant backlash from buyers who viewed the compensation as insufficient for their financial investment.

Media additions

Zoheb Khan, an owner who purchased an Atto 3, expressed concern that the mix-up felt like a cheap tactic and questioned the devaluation of his vehicle. Other owners shared similar frustrations on social media, with some describing themselves as seriously pissed off. Following inquiries from the media, the company’s public relations director, Paul Ellis, publicly addressed the matter.

"It was an administrative error that occurred. There was no deceit."

Paul Ellis, public relations director, via ABC

Ellis stated that the company will contact all 1,265 affected customers via phone, email, and text to facilitate the updated offer. Under the new policy, owners may elect to return their vehicle for a full refund and are free to use those funds to initiate a new transaction for a different vehicle if they choose. Ellis noted that while the company maintains the build date discrepancy does not affect compliance with Australian design rules, warranty, or performance, the full refund option is now available to all who find the initial compensation remedy inadequate. He denied the change in policy was a result of external pressure, stating it followed ongoing internal discussions with operations in China.

The incident has drawn attention to Australian consumer protection laws. Erin Turner, chief executive of the Consumer Policy Research Centre, suggested that the company’s conduct may fall under the definition of misleading and deceptive behavior, noting that consumers are entitled to products that match their described specifications. She emphasized that the depreciation of owning a year-older vehicle could leave owners out of pocket and called for stronger penalties for businesses that fail to uphold consumer guarantee rights.

Assistant Minister for Competition Andrew Leigh noted that the government is seeking to improve the effectiveness of consumer guarantees, including potential new penalties for suppliers and manufacturers who fail to comply with obligations to offer repairs, replacements, or refunds.

The Insurance Council of Australia advised that while a one-year difference in a build date is unlikely to cause a significant shift in insurance pricing, affected owners should verify their policy details. The Australian Competition and Consumer Commission reminded businesses that under Australian Consumer Law, products supplied must be consistent with representations made at the point of sale. If consumers cannot resolve their issues directly with a business, the commission advised they may contact state or territory consumer protection agencies for assistance.

Next Steps

• Direct Outreach: The manufacturer is currently contacting all 1,265 affected customers to facilitate the refund process or the existing $1,100 compensation offer.
• Regulatory Review: Consumer affairs ministers are expected to discuss legislative changes regarding penalties for companies failing to uphold consumer guarantee rights.
• Dispute Resolution: Customers unable to resolve their concerns directly with BYD are encouraged to contact their local state or territory consumer protection agency or report the matter to the Australian Competition and Consumer Commission.