BYD Atto 3 service prices cut amid backlash, but warranty unchanged

Chinese electric-car brand BYD has cut service prices for its new Atto 3 electric SUV by 20 per cent after widespread backlash from Australian customers on social media, including threats of cancelling orders.

However, one of the key points of concern for many BYD customers – the significant rolling back of its seven-year warranty on key components, including some parts with less than a year's coverage – for now remain unchanged.

Final warranty and servicing details for the BYD Atto 3 were confirmed last week, revealing six-year/150,000km coverage – versus the seven years/unlimited km warranty announced earlier this year, which prompted many customers to place deposits. The battery warranty has since changed to eight years/160,000km.

Within the new six-year warranty were exclusions for key parts of the vehicle, which cut coverage for items such as the infotainment screen, suspension and air-conditioning filters to four, three or, in some cases, less than one year.

It was also revealed the Atto 3 would cost nearly $3100 to service over eight years or 160,000km – nearly double the eight-year (but 80,000km) total service price of the BYD's main rival, the MG ZS EV – with every second service costing between $500 and $660.

The announcement drew backlash from buyers in the order queue, with a number of customers on social media cancelling their orders. One BYD buyer created a petition that, as this article was published, had received close to 1300 signatures.

BYD's Australian importer EVDirect has responded to the criticism by lowering service prices (by 23 per cent over eight years), and offering the first year of servicing for free for existing orders.

However, the warranty – six years/150,000km for the overall car, or eight years/160,000km for the battery – has not changed, and retains its exclusions for parts such as the infotainment system, suspension, wiper blades, and more.

Buyers who ordered before August 31 – when the latest notice to order-holders was sent – will be offered the first year of servicing for free "in good faith", worth $189.

The Atto 3 now costs $1384 to maintain over five years and 100,000km – down from $1736.68, a 20 per cent saving – or $2390 over the course of the car's eight-year/160,000km battery warranty (down 23 per cent, from $3092.62).

This now equates to an average of $299 per year (or 20,000km) over the eight-year term. While this is less than $387 per year before, routine maintenance costs remain higher than some other key electric car rivals on sale in Australia.

For drivers that cover fewer kilometres, EVDirect will offer a 'light' service schedule, with fixed $189 annual services for the first five years – as long as vehicles don't clock up more than 60,000km in that time.

However, according to BYD's website, these prices are only applicable to services "completed prior to 01/09/2023 [1 September 2023]" – allowing EVDirect to change prices again a year from now, as required.

In a message to customers, EVDirect said it "released our service schedule at the earliest possible time we could," claiming it did so with "complete transparency and before any actual sales contracts are entered into by customers."

"We undertook a very comprehensive market research process before releasing our service schedule to compare our data versus other brands. What we found and then decided was the best path forward being a complete and open line of transparency with you the consumer," it said.

EVDirect claims "roughly 77 per cent" of the total servicing cost published consists of "qualified labour costs", and that "there is not an inflated price on spare parts" – instead buyers pay "simply the cost price [of the parts] plus a handling fee".

But while the service prices have been reduced, no changes have been made to the Atto 3's warranty, which retains its six-year/150,000km term for the overall vehicle, and eight-year/160,000km period for the battery.

That includes the warranty's various exclusions, which see parts such as the suspension covered for four years/100,000km, the infotainment display, and USB ports covered for three years/60,000km, and the air-conditioning filters and brake pads for only six months/10,000km.

In its message to customers, EVDirect acknowledged the criticism towards the warranty, and says it has "listened very carefully" to feedback.

"In some cases, some of our customers have made their opinion vocal regarding the exclusions that sit below the six or eight-year mark," it said.

"We wish to address and highlight that we intend to go forward with a very clear pathway for our customers and in simple terms we have done away with any fine print and offered total transparency which is something that has not always been the case in the automotive market.

"Regarding exclusions ... these exclusions are for parts of the vehicle and service process of vehicle operations that are beyond the manufacturer's control, therefore some form of balance is required between providing the best possible warranty for all customers, but also enabling provisions for some parts that may be inadvertently mistreated or overused.

"In our case, the customer base is very broad ranging from drivers doing a small number of kilometres right through to buyers using their BYD for commercial use in ride-share applications."

"The warranty we offer is a fully factory-backed warranty by BYD and provides a best-in-class [eight]-year warranty on the most valuable part of
the BYD product, the LFP blade battery.

To compensate for buyers who are unhappy with the revised warranty, EVDirect says it will offer the first annual scheduled service for free – worth $189 – for those who ordered before the latest notice to customers was sent, on August 31.

"We have listened to the feedback and whilst the battery warranty has been increased to eight years, we realise there still may be some early
customers who feel the whole car warranty adjustment to six years was a disappointment," EVDirect said.

"So in good faith we are offering all customers who placed an order before today's date the first year of servicing costs being $189 in value completely free of charge.

"This $189 amount will be issued as a service certificate upon your vehicle purchase and will be redeemable at all BYD automotive-approved service partners which include Eagers Automotive and Mycar."

The cut to the warranties from the seven-year vehicle and battery coverage announced in February was made to align them with other BYD markets in the Asian region, EVDirect says – however it's believed few or none of these countries have the same exclusions as Australia's warranty.

Customers on social media have noted the lower servicing costs and free first-year service – however many remain disappointed with the length of the warranty, and its exclusions for the Australian market.

"The vehicle warranty is the problem. Your service discount will soon disappear with one missed warranty item," one member of the BYD Owners Group Australia group on Facebook said.

In addition to the shorter warranty, EVDirect says it will work with BYD head office to "accelerate" a plan to "release an online training and technology portal ... available to all independent mechanical and auto-electrical professionals who wish to upskill and learn more about the safety and service elements of electric vehicles.".

EVDirect managing director Luke Todd told Drive last week the first Atto 3 deliveries were just days away – however it does not appear any buyers have collected their cars, as of publishing.

Prices for the Atto 3 start from $44,381 plus on-road costs for the Standard Range variant.

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