BYD explores Formula 1 entry as it looks to boost global brand

BYD, the world’s largest electric vehicle seller, is exploring an entry into Formula 1 as the Chinese automaker looks for ways to strengthen its brand recognition outside of China. The move would represent BYD’s first push into elite auto racing.

According to a Bloomberg report, BYD is considering options ranging from acquiring an existing team to potentially building one from scratch, though no decision has been made.

From EV dominance to the racetrack

The timing makes sense. BYD officially overtook Tesla in all-electric vehicle sales for 2025, delivering over 2.25 million battery-electric vehicles compared to Tesla’s 1.63 million. Its overseas sales surpassed 1 million units for the first time last year, a 150% increase, and the company is targeting 1.3 million units abroad in 2026.

But raw sales volume hasn’t translated into the kind of brand prestige BYD needs to compete in premium markets. As we’ve covered, BYD has been actively working on its image problem in key markets like Europe, opening dedicated showrooms and investing in local marketing. An F1 presence would be a completely different level of global exposure.

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Bloomberg reports that BYD’s preferred route would be acquiring an existing racing team rather than building one from scratch, given the enormous financial barriers to entry. Creating and fielding an F1 team from the ground up costs an estimated $500 million per season, and the process takes years of negotiations with the FIA and Formula One Management.

For context, General Motors just paid a $450 million anti-dilution fee alone to bring Cadillac onto the grid as the 11th team for the 2026 season — and that’s on top of all the development and operational costs.

Alpine emerges as a logical target

If BYD moves forward with an acquisition strategy, Alpine stands out as the most logical candidate. The Renault-owned team competes in both F1 and the World Endurance Championship (WEC), which includes the prestigious 24 Hours of Le Mans. Alpine has already announced it will leave the WEC grid at the end of this season, and it dropped its own engine program in favor of becoming a Mercedes customer team starting in 2026.

That said, Renault CEO Luca de Meo has publicly insisted the team is not for sale, reportedly rejecting a $1.2 billion bid without consideration. De Meo has described F1 as essential for the Alpine brand’s credibility.

Bloomberg also notes that BYD is looking at the World Endurance Championship as another potential entry point, which would align with a growing trend of Chinese manufacturers eyeing global motorsport. Chery Group is reportedly partnering with the ACO for Le Mans participation, and Geely’s Lynk & Co brand has entered endurance racing.

F1’s hybrid shift aligns with BYD’s strengths

The 2026 F1 season introduced sweeping new power unit regulations that significantly increase the electrical component of the hybrid drivetrain. The new MGU-K delivers 350 kW to the rear wheels, up from 120 kW — meaning roughly 50% of the power unit’s output now comes from the electric motor. The sport also switched to advanced sustainable fuels.

For a company like BYD, which builds its own batteries, motors, and power electronics in-house, the increased emphasis on electrified powertrains makes F1 research and development far more relevant to its core business than it would have been under the previous regulations.

BYD has already demonstrated its performance ambitions with the Yangwang U9, its electric supercar that hit 472 km/h (293 mph) in track testing and packs nearly 3,000 horsepower. The company also opened its own all-terrain racing circuit in China last year, signaling a growing appetite for motorsport.

FIA President Mohammed Ben Sulayem has been vocal about welcoming a Chinese manufacturer to F1, calling it the next logical step following Cadillac’s arrival. A 12th team would further expand the grid and the sport’s commercial reach, particularly in Asia’s massive automotive market.

Electrek’s Take

This would be a smart play for BYD. The company’s biggest challenge right now isn’t making competitive vehicles, it’s convincing consumers in Europe, Australia, and eventually North America that it’s a premium, trustworthy brand. F1 solves that problem faster than any marketing campaign or showroom strategy could.

Think about what Hyundai achieved with its WRC and motorsport programs — it went from being perceived as a budget brand to one that commands respect in performance and engineering. BYD is in a similar position. It sells millions of vehicles and has genuinely impressive technology, including the Yangwang U9 that embarrasses supercars costing five times as much, but brand perception in Western markets still lags far behind the product reality.

The $500 million per season price tag is steep, but BYD generated over $100 billion in revenue in 2025. The company can afford it. Acquiring Alpine, if Renault can be convinced, would give BYD an instant dual presence in both F1 and WEC, which is exactly the kind of multi-platform exposure a globally ambitious brand needs. The fact that F1’s new hybrid regulations align so closely with BYD’s core competency in electric powertrains is the cherry on top.

We haven’t seen a Chinese manufacturer make a serious run at F1 before. If BYD pulls this off, it could transform how the brand is perceived worldwide, and accelerate the electrification of motorsport in the process.

For now, Xiaomi is seen as the more driver-centric EV brand in China, but it’s clear that BYD is trying to compete.