BYD Korea has issued a public response after complaints spread on online communities and social media that repairs on its vehicles cost too much after accidents. The company said damage inside the body and to structural parts can be greater than it looks from the outside, and that the disputed repair estimate was calculated based on the actual extent of the damage and the work required.
Posts on YouTube and major automotive forums have complained that while the cars are cheap, even minor collisions bring repair estimates of several million won to around 10 million won.
Owners have questioned the durability of the vehicles, saying excessive parts replacement and labor charges were billed even when exterior damage appeared limited. They also said repairs drag on because parts are sourced from China and that service centers are too few.
In a statement on the 1st, BYD Korea said that in the accident cases recently reported in the media, only some of the damaged areas were shown and explanations of internal damage were left out, so the vehicle's actual condition and the scope of the work were conveyed as smaller than they were. "The estimate for the vehicle involved reflected the actual repair process, including straightening of structural sections and the removal and reinstallation of major parts," the company said.
The company said accident repair estimates are produced using Audatex, an international estimating program that calculates costs based on parts information and standard labor-time data provided by manufacturers. Audatex is used in about 100 countries.
Major imported car brands in South Korea and the country's 10 largest insurers use the same system. Final repair costs are determined by combining standard labor hours, hourly labor rates, parts costs and the actual scope of repairs.
At official BYD service centers, the hourly labor rate for general repairs paid by customers averages about 115,000 won, before value-added tax. Rates at individual service centers can vary depending on the operating standards of each dealer and branch. Insurance-covered repairs also carry different labor rates depending on contracts between insurers and repair shops.
BYD Korea said the variation in labor rates across service centers reflects a structure in which dealers set prices independently. Rather than the head office fixing a single rate, individual service centers price their work according to their own operating standards and policies.
Addressing concerns that slow parts supply lengthens repair times, the company said it stocks major parts in South Korea in advance. It said it pre-stocks key maintenance and accident-repair parts at a domestic parts logistics center and across its dealer service network, securing inventory based on service data and demand at each dealer.
Parts not held in domestic inventory are flown in as needed, and the company operates an emergency delivery system for each branch. It also provides replacement vehicles when repairs are expected to take a long time.
BYD entered South Korea's passenger car market in January last year and has rapidly increased sales on the strength of its pricing. According to the Korea Automobile Importers and Distributors Association, BYD sold 14,521 vehicles in South Korea from January to July this year, ranking fourth among imported car brands.
