More than 1,200 Australian customers who contracted to buy 2026 model year BYD vehicles received cars built to 2025 specifications instead. After an investigation by ABC News brought the issue to public attention, BYD reversed its initial compensation offer and committed to full refunds for all 1,265 affected buyers.
The vehicles involved include both electric and plug-in hybrid models. Affected customers are spread across the country, with a concentration in Melbourne and Sydney.
Image: BYD Company Ltd logo, Wikimedia Commons, CC BY SA 4.0
From $1,100 to a Full Refund
When customers first raised the discrepancy, BYD offered a payment of $1,100 per vehicle, an amount roughly equivalent to the dealer delivery charge. Affected owners in Melbourne and Sydney were not satisfied with that response, pointing to potential resale value losses that the fixed payment did not come close to covering.
Following ABC News reporting on the matter, BYD announced it would offer full refunds to all 1,265 affected customers. The company did not specify a deadline for the refund process, but the commitment covers the entire purchase price for any buyer who chooses to return their vehicle.
What BYD Says Happened
A BYD spokesperson described the situation as “an administrative error”, attributing it to internal confusion between the date a vehicle left the factory and the date it was actually manufactured. The company maintains that the vehicles fully comply with Australian design rules and that the issue has no effect on warranty coverage or driving performance.
The mix-up appears to be linked to BYD’s rapid growth in Australia. The brand recently overtook all but Toyota in monthly new vehicle sales, and to keep pace with demand the company had been using its own dedicated cargo vessels to speed up deliveries from Chinese factories. The accelerated logistics chain is understood to be the context in which the year discrepancy went undetected.
Resale Value and Insurance
Customers’ primary concern has been the effect on resale value. A car listed as a 2025 model typically commands a lower price in the used market than an equivalent 2026 model, and buyers who contracted for the newer year argue the difference in value exceeds any fixed payment.
Insurers have indicated that a one-year difference in manufacture date is unlikely to significantly change premiums. However, insurance industry representatives have advised all affected customers to notify their insurer of the corrected model year, to ensure policy documentation accurately reflects the vehicle being covered.
Regulators Weigh In
A consumer policy researcher has argued the conduct may constitute misleading or deceptive behaviour under the Australian Consumer Law and has called on the Australian Competition and Consumer Commission to open a formal investigation. The ACCC has not confirmed whether it will do so, but has directed consumers to lodge complaints through their state or territory consumer protection agency and through the ACCC’s own reporting process.
At the federal level, the assistant minister responsible for competition policy has flagged that the government is considering new penalty provisions for suppliers and manufacturers that fail to honour their obligations to repair, replace, or refund under Australian Consumer Law. The BYD situation is consistent with the type of case that prompted that review.
- Compare the model year on the delivery documentation with the year stated in your purchase contract before you sign the handover papers
- Locate the VIN (the 17-character code on the dashboard near the windscreen or on the door frame) and ask the dealer to confirm the build date recorded against it
- If there is any discrepancy, raise it with the dealer in writing before taking the keys. Do not sign until the issue is resolved or the dealer provides a written commitment
- If your insurer has already issued a policy for the vehicle, notify them of the correct model year as soon as possible
