Chinese electric and hybrid car manufacturer BYD has admitted to selling the wrong model to more than 1,200 customers in Australia.

The brand has been caught in a major blunder after 1,265 owners were informed by the company they'd been driving the 2025 model, instead of the 2026 car they thought they had bought.

The customers were initially offered just $1,100 in compensation.

But the ABC has since reported they will now be offered a full refund.

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

'We will offer customers a full refund. They will take that refund and if they wish to have a new transaction they can purchase another BYD from us.'

Mr Ellis told the publication that in the error, BYD had used the dates the models left the factory, instead of when they were manufactured.

He stressed the error didn't impact the car's performance or warranty.

One Melbourne customer, Zoheb Khan, bought a BYD Atto 3 model for $47,000, and was shocked to receive a call from the company's customer care that he'd been driving the wrong model.

'How can that admin error be so big, with so many people and so many cars?' he told the publication.

BYD has become increasingly popular in Australia, rivalling other EV brands such as Tesla.