BYD Australia has more than tripled its original compensation offer after discovering that over 1200 vehicles were sold as 2026 builds when they were actually produced in 2025.

Those affected initially received an option for $1100 in compensation once it emerged that the Atto 3, Sealion 8 and Shark 6 models had been manufactured the prior year. Buyers could also return the vehicles for a full refund or swap them for a new equivalent model.

Further checks showed roughly 3800 vehicles were wrongly recorded in BYD systems as 2026 builds, although just 1200 had reached customers or been allocated.

After seeking independent advice, BYD Australia raised the compensation to $3500 for those keeping their vehicles. The updated amount applies retroactively to anyone who already accepted the first offer.

BYD reports that 72 per cent of owners have now opted for the compensation payment.

A company spokesperson explained that further analysis compared similar models in established valuation guides to assess typical year-to-year value changes for vehicles with matching specifications.

Owners who accepted the initial $1100 are being contacted again to receive the higher $3500 amount, which the company says will suit most customers.

Those who prefer not to accept the payment can still choose a full refund including associated costs or a direct replacement with a 2026-built vehicle of the same type.

The automaker will cover any expenses tied to returning a vehicle or arranging a swap for a 2026 model.

With around 2850 vehicles now reclassified as 2025 builds, BYD addressed questions about possible effects on depreciation rates.

Returned vehicles will be handled through dealers and often used as company cars or service loan vehicles, according to the spokesperson.

The company continues to review its data manually to identify every affected customer.

The spokesperson noted that offering full refunds on vehicles without defects demonstrates transparency and a commitment to doing what is right.

They added that the issue stemmed from an administrative mistake rather than any intent to mislead and that quick action helps build trust for a newer brand in Australia.

Although BYD would have preferred the situation never arose, more than 350 owners chose refunds or replacements, allowing the brand to record fresh deliveries in monthly sales figures and gain credits under efficiency standards.