Image Credit: iMoD Official, CC BY 3.0, Wikimedia.BYD Australia has expanded the compensation it is offering customers after selling vehicles advertised as 2026 builds that were actually built in 2025.The issue affected three BYD models and more than 1,200 vehicles, prompting the company to initially offer affected customers $770 (A$1,100) in compensation.However, the Chinese automaker has now increased the payment to $2,452 (A$3,500), while continuing to offer customers the option of a full refund or an exchange for a 2026-built vehicle.AdvertisementAdvertisementAs a relatively new brand in Australia, BYD is keen to maintain customer trust. The company has stressed that the mix-up was an administrative error rather than intentional and says it is taking every step to ensure affected customers are properly compensated.BYD Wants to Make AmendsImage Credit: iMoD Official, CC BY 3.0, Wikimedia.According to a report by CarExpert, BYD increased its compensation for affected customers following an independent consultation. The company confirmed that 72 percent of owners have chosen to take the compensation.The issue affected the Atto 3, Sealion 8, and Shark 6 models, which were built in 2025 but sold as 2026-built vehicles. Affected customers can also decline the compensation and return their vehicles for a full refund.Owners could also exchange their 2025-built vehicle for a 2026-built vehicle. CarExpert revealed that around 3,800 vehicles were incorrectly listed on BYD's internal systems as 2026 builds, although only 1,200 of those had been sold or allocated to customers. Speaking about the options available to affected customers, a BYD spokesperson said:AdvertisementAdvertisement"As the situation evolved we conducted further analysis, comparing similar models in industry reputable valuation guides, where the data shows the implied reduction in value movement from one year to the next with vehicles of the same specification."Those customers that were accepting of the $1100 payment are in the process of being recontacted and informed that the payment will now be $3500. This remedy will be convenient for most customers."Customers that do not wish to accept the payment have the option of either a full refund of the purchase price and associated costs, or a like-for-like vehicle replacement with a 2026-built vehicle."Any costs incurred by customers will be covered by BYD if they decide to return their vehicle or exchange it for a 2026-built vehicle.AdvertisementAdvertisementBYD is checking its data manually to ensure all affected customers are offered compensation. As around 2,850 vehicles are being reclassified as 2025 builds, BYD was asked whether this could affect their resale value. The spokesperson said:"Any returned vehicles will be carefully managed through our dealers, many activated as company cars and service loan vehicles and the like."Transparency Was a Priority for BYDThe company spokesperson mentioned earlier that BYD wanted to ensure full transparency in compensating affected customers, and that the issue was the result of an administrative error rather than a deliberate attempt. They said:"I would like to think that our level of transparency and our swiftness to respond and offer customers a full refund on a vehicle that has no defect is an honourable one, and is the right thing to do.AdvertisementAdvertisement"We're owning it – this was not an act of deceit – this was not deceitful behaviour, this was an administrative error we were quick to jump on."At the end of the day, we're a relatively new brand in Australia and the only way we're going to build on our success is by being a trusted brand, and to do that we'll be making the right decisions for our customers."Although the mistake was a setback for BYD, more than 350 customers chose a refund or a replacement vehicle. That means the replacement vehicles will count as new deliveries in BYD's sales figures.
