BYD Australia has increased the compensation offered to customers after it sold them 2025 models instead of the claimed 2026 models. The company initially announced a compensation of $770 (A$1100) to affected customers. However, it later increased the amount to $2,452 (A$3500).According to a report by Australia's CarExpert, BYD sold 1200 vehicles as 2026 models that were actually built in 2025. The affected models include Atto 3, Sealion 8, and Shark 6. Customers who were wrongly sold the older models were initially offered $770 as compensation.Or, they could opt for a full refund by returning their vehicle. If that still wasn't enough, they could exchange the 2025 model vehicle for the 2026 model. BYD also said it will cover costs incurred by the customers if they decide to return or exchange their vehicles.AdvertisementAdvertisementAfter an independent review, BYD increased its compensation to A$3,500 for customers who chose to keep their vehicles. The higher payment also applied to those who had already accepted the original offer. The company confirmed that 72% of the affected customers opted to take the compensation.The Chinese brand is only a few years old in Australia, and it is willing to go to great lengths to gain the trust of the locals. Addressing the issue that prompted BYD to offer compensation, a spokesperson said:"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.AdvertisementAdvertisement"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."An estimated 2,850 vehicles are now being reclassified as having been built in 2025. A BYD spokesperson told CarExpert earlier that its decision to look after the interests of customers and acknowledge the mistake was the right approach. 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."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.AdvertisementAdvertisement"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."BYD is reportedly reviewing customer data manually so that no affected customer is left out.Note: All prices mentioned in the quotes are in AUD.