BYD Evaluates Motorsport Entry Through Formula 1

China’s BYD is exploring the possibility of entering Formula 1 as the Chinese automaker looks to strengthen its brand recognition in global markets. If it goes ahead, the move would mark the company’s first involvement in top-tier international motorsport.

According to a Bloomberg report, BYD is evaluating several possible approaches. These include acquiring an existing Formula 1 team or establishing a new team from scratch, although no final decision has been made.

The potential move comes as BYD continues to expand rapidly outside China. The automaker overtook Tesla in global battery-electric vehicle sales in 2025, delivering more than 2.25 million EVs compared with Tesla’s 1.63 million units.

The company’s international growth has also accelerated. Its overseas sales crossed the one-million mark for the first time last year, representing a 150 percent increase. BYD is now targeting overseas sales of around 1.3 million vehicles in 2026.

Despite strong sales momentum, the company is still working to strengthen its brand positioning in premium markets, particularly in Europe. BYD has been expanding its retail footprint and investing in local marketing efforts, but a Formula 1 presence could offer far greater global visibility.

Entering Formula 1 as a brand-new team would require massive investment and lengthy negotiations with the sport’s governing bodies. Estimates suggest running a team can cost roughly $500 million per season, aside from the time required to secure approvals and establish operations.

The scale of investment required was highlighted recently when General Motors paid a $450 million anti-dilution fee to bring Cadillac onto the Formula 1 grid as the 11th team starting in the 2026 season. This fee came in addition to development and operational expenses.

One potential option could be Alpine, the Formula 1 team owned by Renault. Alpine currently competes in both Formula 1 and the World Endurance Championship, which includes the prestigious 24 Hours of Le Mans race.

However, Renault CEO Luca de Meo has previously stated that the team is not for sale and reportedly rejected a $1.2 billion acquisition offer. He has described Formula 1 as an important part of Alpine’s brand identity.

The report also suggests that BYD could consider entering global motorsport through the World Endurance Championship instead. Several Chinese manufacturers have recently shown interest in international racing, including Chery and Geely’s Lynk & Co brand.

Formula 1 is set to introduce major power unit changes from the 2026 season, significantly increasing the electrical component of the hybrid drivetrain. Under the new rules, the electric motor will deliver far more power than before, meaning roughly half of the total output will come from the electric system. The sport will also move to advanced sustainable fuels.

For a company like BYD, which develops its own batteries, electric motors and power electronics, the increased focus on electrification could make Formula 1 research and development more relevant to its core business.