China's BYD, the world's largest electric vehicle seller, is considering an entry into Formula 1 as its first major push into elite auto racing. The automaker is evaluating options such as acquiring an existing team or building one from scratch, amid the sport's shift toward hybrid engines. No final decision has been made, with costs potentially reaching $500 million per season posing a significant barrier.
BYD Company, which overtook Tesla in battery-electric vehicle sales in 2025 with 2.25 million units compared to Tesla's 1.63 million, is seeking to enhance its international brand recognition beyond China. The company achieved overseas sales exceeding 1 million units in 2025, a 150% increase, and aims for 1.3 million units abroad in 2026. According to reports from Bloomberg and sources familiar with the matter, BYD is examining entries into competitive motorsport, including Formula 1 and the World Endurance Championship, which features the 24 Hours of Le Mans.
Options under consideration include acquiring an existing Formula 1 team or developing one independently, though the latter involves substantial financial and regulatory hurdles. Building and operating an F1 team from scratch is estimated to cost up to $500 million per season, requiring years of negotiations with the FIA and Formula One Management. For comparison, General Motors paid a $450 million anti-dilution fee to introduce Cadillac as the 11th team for the 2026 season.
Alpine, owned by Renault, emerges as a potential acquisition target. The team is set to exit the World Endurance Championship at the end of the current season and switch to Mercedes engines in 2026. However, Renault CEO Luca de Meo has stated that the team is not for sale, rejecting a reported $1.2 billion bid and emphasizing its importance to the Alpine brand.
The 2026 Formula 1 regulations, introducing a more electrified hybrid power unit with the MGU-K delivering 350 kW—up from 120 kW—and sustainable fuels, align with BYD's expertise in batteries, motors, and power electronics. This shift represents about 50% of the power unit's output from electric components. BYD has showcased its performance capabilities through the Yangwang U9 electric supercar, which reached 472 km/h in testing with nearly 3,000 horsepower, and by opening an all-terrain racing circuit in China last year.
Other Chinese manufacturers have shown interest in global motorsport: Geely competes in touring car racing via Cyan Racing, and Nio won the inaugural Formula E driver title in 2015. Chery Group is partnering with the ACO for Le Mans, while Geely's Lynk & Co has entered endurance racing. FIA President Mohammed Ben Sulayem has expressed support for a Chinese manufacturer's F1 entry, noting it would expand the grid to 12 teams and boost the sport's reach in Asia. BYD generated over $100 billion in revenue in 2025, providing financial capacity for such a venture, though a spokesperson declined to comment on the explorations.
