More than 1,200 customers who bought electric and hybrid cars from Chinese automaker BYD will be offered a full refund after the company admitted it sold them cars of the wrong year.
BYD has grown in popularity thanks to its electric and hybrid vehicles.
It recently secured second place in new car sales behind Toyota, according to industry data.
The demand was so great that new supplies had to be urgently sent, even organizing a special ship owned by BYD to deliver new purchases.
However, some customers were shocked and disappointed after the Chinese company contacted them to say they had not received the 2026 builds they paid for.
Instead, they used the 2025 builds and received a $1,100 refund.
BYD initially offered customers $1,100 in compensation. (ABC News: Patrick Stone)
The ABC spoke to four customers in New South Wales, Victoria and Western Australia who described BYD’s compensation offer as grossly inadequate.
A consumer advocate criticized the company’s treatment of its customers and questioned whether it broke consumer protection law by engaging in deceptive behavior and called for an investigation.
But after ABC contacted BYD for comment, it admitted the error, apologized and pledged to offer all 1,265 affected customers a full refund for the first time.
“It was an administrative error. There was no deception,” BYD communications director Paul Ellis said.
BYD denied it had offered a full refund due to ABC’s involvement, saying discussions were ongoing with its China operations and local management.
“We will offer customers a full refund. They will take that refund and if they want to do a new transaction, they can purchase another BYD from us,” Mr. Ellis said.
Social media posts in BYD user groups have attracted hundreds of comments on the issue.
“How can the mistake be so big?”
Before the BYD flip, Melbourne customer Zoheb Khan said he felt like he had been scammed.
“It’s very unethical and seems like a very cheap tactic to me,” he said.
Mr Khan lives on the outskirts of Melbourne, in the fast-growing suburb of Tarneit.
Earlier this year, soaring gas prices prompted him to buy a Premium Atto 3 electric car for $47,000.
His family made the decision even though it was a “big financial commitment.”
After driving the car for several weeks, Mr. Han was shocked when he received a call from BYD customer service.
“There was one lady who just started explaining to me that they made an administrative error and your car is actually built in 2025, not what the contract says,” he said.
She told him he would be offered a refund of $1,100, the amount the dealer charged for delivery.
When he checked the vehicle identification number, he confirmed it was a 2025 model.
BYD blamed the error on an “administrative error.” (ABC News: Patrick Stone)
Mr Khan sent an email to his local dealership, which responded that “there was an issue with BYD sending us… the wrong cars.”
Even though BYD assured him there was no significant difference between the vehicles, he was concerned that the error could affect resale value.
Mr. Khan complained to BYD, rejecting the $1,100 offer. Instead, he asked for $3,000 or a 2026 replacement car.
“I don’t see any immediate need for the company to address this issue,” he said.
“How can this admin error be so big with so many people and so many machines?”
Kirill Kononov also complained to the company after receiving the car. (ABC News: Chris Taylor)
Another new owner of BYD, Sydney resident Kirill Kononov, shared Mr Khan’s concerns.
Mr. Kononov just recently purchased a premium Atto 3 electric car and received the same customer service call saying there was a mix-up.
“I can’t believe no one knew about this problem before the machines were delivered,” he said.
He feared repercussions when he sold the car, given the significant drop in value from its list price of $48,000.
“There is a significant difference,” he said.
“This will directly impact the selling price of the vehicle.”
Mr. Kononov said he wanted a quick resolution to the problem, involving either higher compensation, a replacement of the 2026 model car, or a full refund.
“I don’t want to fight for money. I expect that under the consumer protection law, the government should protect consumers,” he said before doing a backflip.
What’s happened?
Mr Ellis told the ABC in an interview that BYD had mistakenly used the dates the cars left the plant rather than the date they were produced.
He assured customers that the cars were not significantly different from each other, but admitted that the release date was incorrect.
“This does not affect the vehicle’s compliance with Australian design regulations. This does not affect the vehicle’s warranty or performance. It’s just a build date.”
– Mr. Ellis said.
He said the company will call, email and text all affected customers to make an updated offer.
Customers can still receive a $1,100 refund, and most said they were satisfied with that, he said.
However, they can now also get a full refund or buy a new 2026 car for about the same amount they would have paid before.
BYD says it will offer full refunds to more than 1,260 affected customers. (ABC News: Patrick Stone)
Mr Ellis denied BYD only changed its position after being contacted by the ABC, saying it had been in the works for several weeks and the decision was made at a meeting hours before the interview took place.
“It is important that we maintain integrity with our Australian customers. We need to do the right thing,” he said.
He acknowledged that the error would affect resale value, but denied that the $1,100 offer deceived consumers.
The Insurance Council of Australia said a car’s production date was one of many factors affecting the price of insurance, but a difference of one year was unlikely to have a significant impact. It says affected customers should contact their insurer to have their details corrected.
Calls on ACCC to investigate
Erin Turner, CEO of the Center for Consumer Policy Research, questioned whether BYD misled its customers by violating consumer protection law.
She called on the Australian Competition and Consumer Commission (ACCC) to investigate.
“There are very clear and robust protections against misleading and deceptive conduct and this could easily fall into that category,” she said.
“This law applies when a company promises one thing and does not deliver. If you had a 2025 car delivered to you and paid for a 2026 car, that sounds misleading in my opinion.”
BYD is now the second most popular new car brand in the country. (ABC News: Patrick Stone)
Ms Turner agreed that depreciation could leave someone “seriously out of pocket” and BYD’s original offer did not seem reasonable.
She said customers should have the right to compensation, replacement or money back if a product they buy is not as described – known as consumer guarantee rights.
Ms Turner said customers who sought to protect their consumer rights in disputes with the car industry often faced lengthy and costly battles through the courts or tribunals.
She wants the country’s consumer ministers to add penalties to tighten the law so regulators can fine companies that refuse to respect consumer guarantee rights – an issue that will be discussed at an upcoming ministerial meeting.
“A law without punishment is toothless, it means nothing.”
she said.
“It’s really important that we get this reform done, but we’ve been talking about this for over a decade.”
Erin Turner says people often face long and costly battles with the auto industry when trying to protect their consumer rights. (ABC News: Loretta Florence)
In a statement, Assistant Secretary for Competition Andrew Lee said he wanted to improve the effectiveness of the consumer guarantee so that if something goes wrong, people get fair help.
This included proposing new penalties for suppliers and manufacturers who fail to meet their obligations to offer consumers repairs, replacements or refunds.
The ACCC has not said whether it will investigate the issue.
The spokesman said if consumers are unable to resolve their problem with a business, they can lodge a complaint with their state or territory consumer agency and report the matter to the ACCC.
“Under the Australian Consumer Law (ACL), consumers have automatic rights when purchasing products and services,” they said.
“These rights are called consumer guarantees and include the right to ensure that products supplied correspond to their description. If the vehicle supplied does not meet one of the consumer warranties, consumers may be entitled to damages.
“The ACL also prohibits businesses from engaging in misleading or deceptive conduct or making false or misleading representations about products or services, including the style or model of a product.”
The statement added that consumers may also have rights under the sales contract.