Gasgoo.com (Shanghai April 16) - BYD will be unveiling a new warranty policy, the Guangzhou Daily reported today. The new policy will offer coverage for four years or up to 100,000 km driven, compared with the industry wide standard of two years and 60,000 km. Several analysts speculate that BYD's new policy will help set a new standard for the industry.

BYD's new policy will cover nearly all key auto parts. Furthermore, auto parts for its new energy vehicles will enjoy an extra year of coverage. BYD's warranty time for easily worn auto parts, including windshield wipers and tires, is reportedly twice as long as the industry average.

Parts covered by BYD's policy are categorized into four different types. Most key parts, including the engine, body and transmission, fall into the first category, which will be covered by the four year and 100,000 km policy. A few other parts, such as the multimedia system, absorber, seatbelt and batteries, are included in the second type and will be taken care by the standard two year and 60,000 km policy. The third category, which includes wheel and clutch release bearings, will be covered for one year or up to 30,000 km driven. Easily worn parts, such as windshield wipers, clutch plates, tires, light bulbs and spark plugs, fall into the fourth category, which is offered six month and 10,000 km coverage.

According to BYD President Wang Chuanfu, the new policy is not being implemented just for the sake of consumers, but will also help the manufacturer improve its overall brand image. As BYD is using higher quality parts, Mr. Wang does not expect the new policy to significantly increase costs for the manufacturer.