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Feann Torr12 July 2026
NEWS

BYD refunds more than 1000 customers

Can BYD dethrone Toyota? The latest drama showed why that's harder than it sounds

COMMENT

BYD has one goal that towers above every other target on its roadmap: dethrone Toyota as the world's biggest car maker by 2030.

On paper it's not laughable – the sales numbers, the vertical integration, the sheer speed of its global rollout all point in the right direction.

But building the biggest car company on earth isn't just a manufacturing exercise. It's a trust exercise. And last week, BYD gave Australian buyers a pretty clear look at how far it still has to go.

byd atto 3 16 9hvp
byd atto 3 20 pw7i
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The story, uncovered by the ABC, reveals that more than 1200 Australian customers who paid for what they believed were 2026-build BYD electric and hybrid vehicles were actually handed 2025 builds.

Some owners found out only when they queried their own VIN or vehicle identification number.

BYD's first move wasn't a refund. It was a $1100 goodwill payment, roughly the value of the dealer delivery fee.

Melbourne buyer Zoheb Khan, who'd sunk $47,000 into a Premium Atto 3, told the ABC it felt like he'd been deceived and pushed back on the initial offer.

One buyer bought what he thought was a 2026 BYD Premium Atto 3

Other buyers raised a clear commercial concern: a car with a "wrong" build year carries a resale and depreciation hit that $1100 doesn't come close to covering.

Only after the ABC started asking BYD questions did the company shift position, agreeing to offer all 1265 affected customers a full refund. The mix-up was blame on a clerical error.

BYD's explanation doesn't inspire much confidence in the systems behind a company chasing the global number one spot.

Can BYD climb to the top and unseat Toyota?

BYD Australia’s public relations director Paul Ellis told the ABC, "It was an administrative error that occurred. There was no deceit."

BYD has also pushed back on the idea that the ABC's involvement forced its hand, saying instead that internal discussions between its Chinese operations and Australian management had been running for weeks and the refund decision was locked in shortly before Ellis sat down for interview.

Whatever the case, the optics are sub optimal. Rewind the clock and this isn't an isolated wobble for the Chinese challenger brand.

The new BYD Seal 6 wagon arrives here in August

BYD's local warranty terms had already drawn criticism – including from this journalist – for excluding coverage on components buyers would reasonably expect to be included. BYD tightened up its warranty provisions after significant focus.

Allegations of slave labour raised by the Brazilian authorities during the construction of BYD’s crucial new Brazilian factory in late 2024 also tarnished the brand.

Add a build-year mix-up affecting over a thousand cars in Australia and a consumer advocate now openly asking whether the ACCC should investigate for misleading conduct, and a pattern starts to form.

Not of malice, but of a company still learning what customer-first actually means in a market like Australia's. Something that's taken established car brands like Kia and Mazda decades to build.

BYD is a young brand moving at a pace few manufacturers have ever matched, and young brands make mistakes.

BYD's petrol electric Shark 6 is very different from the HiLux

The real question is whether this particular incident gets learned from, or whether it's just the latest in a string of process failures that chip away at exactly the thing BYD can't manufacture its way into: trust.

Toyota didn't become the world's biggest car maker on volume and value alone.

It got there partly by becoming the brand people trusted not to mess up their build sheet, their warranty, or their $47,000 purchase.

The carsales team reports without fear nor favour

And before you write in calling us Toyota apologists and BYD bashers, have a watch of my Toyota Prado review… where it died. And had to be towed away.

We reported the whole thing, including that Toyota said the car's death was my fault. But I digress…

If BYD wants to wrestle the crown of world’s biggest car maker from Toyota by 2030, weeks like this one are the real obstacle. Not batteries, not factories, not even Toyota itself.

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