Chinese electric vehicle corporations BYD is reportedly reviewing entry into international motorsports to raise its global brand recognition. If BYD actually enters Formula One (F1), it is expected to be a rare case of a Chinese automaker directly challenging a market centered on European and U.S. teams.
According to Bloomberg on the 11th, BYD is internally reviewing ways to participate in international racing series such as F1 and the World Endurance Championship (WEC). Citing a person familiar with the matter, Bloomberg said, "As BYD has grown rapidly in overseas markets recently, and as motorsports technology shifts toward hybrid engines, the company is reviewing such options." BYD appears to be considering both entering the WEC, including the 24 Hours of Le Mans, and F1.
The most likely path is acquiring equity in an existing team. Bloomberg said, "In the industry lately, acquiring stakes in existing teams is more common than founding a new one," adding, "Germany's Audi fully acquired the Swiss racing team Sauber and will compete in F1 starting this year. Investment firm Otro Capital is currently pushing to sell its equity in Renault's Alpine Racing."
BYD has grown mainly on affordable electric vehicles. More recently, it has also pursued a strategy to strengthen its brand image by expanding its premium lineup. The supercar U9X from BYD's high-end brand Yangwang clocked 496 kph in track tests conducted in Germany last year. Its Nürburgring Nordschleife lap time is 6 minutes 59.157 seconds. A BYD official said, "The Yangwang U9X is the fastest electric car in the world."
Bloomberg said, "BYD is evaluated as a corporations symbolizing the Chinese auto industry's push into the European and Central and South American markets," adding, "However, due to current high tariffs and market regulations, it does not sell cars in the United States, and an F1 entry would help raise its profile in the U.S. market."
F1's popularity is also gradually rising in China. The Shanghai Grand Prix resumed in 2024, five years after COVID-19, and Chinese racing driver Zhou Guanyu debuted in 2022 as China's first F1 driver. In motorsports, the adoption of eco-friendly regulations is expanding. F1 plans to introduce new hybrid power rules this year with increased battery capacity, and the WEC is also a representative series that uses hybrid vehicles.
However, the massive expense of entering motorsports is the biggest variable. Developing competition cars and running a team require years of preparation and reportedly cost up to $500 million a year (about 734.3 billion won). Since the start of this year, BYD has faced growing concern over its results as domestic sales have slumped due to reduced Chinese government electric vehicle subsidies and exports have also fallen.