Warranty backflip backfires on BEV builder

AUSTRALIAN BYD distributor, EV Direct, may be forced to back pedal on some of its warranty provisions following push back from prospective buyers, some of whom have cancelled orders for the new Atto 3 EV because of warranty changes and closer scrutiny of service costs.

A report this week from news outlet Bloomberg Business said: “Expectant owners of BYD electric cars in Australia recently discovered they won’t get the warranty they were promised, triggering an outcry and a 1660-word response from its under-fire local distributor.”

The report continues: “The row between EV Direct, BYD’s exclusive distributor in Australia, and prospective buyers is a setback for China’s biggest electric-car maker and its efforts to become a global brand.”

“This was already going to be a tall order for the Berkshire Hathaway-backed company, whose vehicles are little known outside China. The dissatisfaction of would-be customers in Australia has spurred a Change.org petition that’s garnered some 1400 signatures.”

Under warranty terms announced before the launch of its Atto 3 electric model, EV Direct offered customers a seven-year/unlimited-kilometre warranty, matching rival MG ZS EV, then unilaterally changed terms before customers took delivery.

The warranty was cut to six years and 150,000km, with some components covered for shorter periods. As an example, warranty coverage for the infotainment screen and suspension range from three to four years.

The changes, perceived as ‘penny pinching’ in certain quarters, have prompted some customers to cancel their order.

A Bloomberg report said EV Direct has tried to convince customers the warranty has changed for the better, noting it will provide “a best-in-class eight-year warranty on the most valuable part of the BYD product — the LFP blade battery.”

However, buyers in Hong Kong and New Zealand get a full six years on the complete car.

An EV Direct spokesperson said: “The vehicle warranty cut was due to a standardised BYD policy for the Asia-Pacific region – and customer demand for additional battery coverage.”

In defence of the warranty changes, EV Direct managing director Luke Todd said: “When we launched in February, BYD hadn't set their global warranty policy, or especially for this region, so we had to go it alone. We went with what we had agreed at the time, and that was a ‘seven plus seven’ years of vehicle and battery warranty.”

He said BYD head office had come out with a ‘regional’ warranty package in the last few months that applied throughout the whole Asia-Pacific region.

Mr Todd said customer feedback suggested more importance was placed on battery life and that was the focus of a warranty. BYD offers a lifetime warranty on the batteries of some of its electric cars in China.

BYD buyers have additionally been hit with higher servicing costs than some rival EVs. A servicing price schedule revealed the Atto 3 will cost $3092 to service over eight years or 160,000km.

This compares with main rival MG ZS EV at $1611 over the same TIME period, or $2415 over a 140,000km distance. EV Direct says labour costs make up a significant chunk of BYD’s service costs-together with dealer set up costs.

In terms of comparative EV warranty coverage, BYD offer a six-year/150,000km warranty, Tesla offer a four-year/80,000km, Hyundai is five-year/unlimited-kilometre deal and MG is at seven-years/unlimited kilometres.

Recent entrants in the EV space have varying warranty offers. Lexus offer up to 10 years of coverage on its electric-car batteries, with no distance limit.

Automotive insiders (other brand dealers) say BYD buyers would be well advised to read their warranty fine print as many parts of the vehicle such as the dampers and tyre pressure monitoring system have shorter warranty cover… as little as six months.

Warranty and service items on BYD vehicles are being handled through external providers Eagers Automotive dealerships and MyCar (previously K-Mart Tyre and Auto Service).