BYD explores F1 entry in first auto racing push
The potential costs of entering F1 could be a significant obstacle
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[BEIJING] BYD is examining options to enter competitive motorsport including Formula One and endurance racing, in an effort to boost the Chinese brand’s appeal globally, according to people familiar with the matter.
The automaker is looking at several options following its rapid growth outside its home market and competitive racing’s continuing shift towards hybrid engines, the people said, asking not to be named discussing private information.
These range from the World Endurance Championship, which includes the 24 Hours of Le Mans race, to F1, either through building its own team or potential acquisitions, the people added.
Any move by BYD would be a rare direct attempt by a Chinese manufacturer to take on a sport dominated by European and US teams. Carmakers from the country have had sporadic interest in motorsport. Geely successfully participates in international touring car racing through Cyan Racing, formerly the Volvo factory team, and Nio won the driver title for the inaugural Formula E electric championship in 2015.
The potential costs of entering F1 could be a significant obstacle for BYD, according to one of the people. Developing and entering a car often takes years of negotiations and costs as much as US$500 million a season.
No decision has been made and the company may not decide to enter any competition. A BYD spokesperson did not respond to a request for comment.
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BYD, known for making affordable electric and hybrid vehicles, is trying to broaden its appeal by expanding into luxury cars. In 2025, its high-end Yangwang brand tested its U9 Xtreme vehicle at a track in in Germany, recording a top speed of more than 308 miles per hour.
BYD recently overtook Tesla as the world’s top seller of EVs and has been the face of China’s aggressive push into Europe, Latin America and other major auto markets.
An F1 partnership would also significantly boost awareness of BYD in the US, though the company currently doesn’t sell cars there, largely due to high tariffs and market restrictions. The sport itself is experiencing a surge in US popularity, fuelled partly by the successful Netflix series Formula 1: Drive to Survive and an increase in races in the country.
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The head of the FIA, Formula One’s governing body, has been vocal about welcoming a team from China. In an interview with Le Figaro last year, Mohammed Ben Sulayem said a Chinese manufacturer would be the next logical step for the sport, following the arrival of Cadillac.
Popularity in China
F1’s popularity in China is also growing, following the return to Shanghai in 2024 after a five-year absence. Zhou Guanyu became the first Chinese F1 driver in 2022. The new F1 season began last weekend in Melbourne, Australia, with the next race in Shanghai this weekend.
Existing teams tend to be resistant to new entries, with any new team diluting prize money and potentially also valuations. This year is Cadillac’s first season on the grid after years of negotiations.
Buying into F1 is more common. This season is the first for Audi, after taking full control of Swiss motorsport company Sauber. Investor Otro Capital is currently seeking buyers for its stake in Renault’s Alpine Racing.
However, full team sales are rare. Billionaire Lawrence Stroll’s Aston Martin team has recently sold stakes in the team, which has had a disastrous start to the new season after mechanical issues including vibrations from the power unit.
Motorsports such as F1 are increasingly adopting environmentally friendly practices. For 2026, F1 has implemented new rules, including hybrid power regulations that boost battery capacity. The World Endurance Championship is another racing series that utilizes hybrid vehicles. BLOOMBERG
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