Chinese electric vehicle manufacturer BYD is exploring a potential entry into Formula 1 as part of a strategy to strengthen its brand recognition outside China, according to a report by Bloomberg.
The company is considering several options, including acquiring an existing Formula 1 team or creating a new one from scratch, although no final decision has been made.
The possible move follows strong growth in BYD’s global electric vehicle business. The automaker delivered more than 2.25 million battery-electric vehicles in 2025, surpassing rival Tesla, which delivered about 1.63 million units in the same period.
BYD has also expanded rapidly in overseas markets. The company’s international vehicle sales exceeded one million units in 2025, representing growth of around 150%, and it aims to increase overseas deliveries to 1.3 million units in 2026.
Despite rising sales volumes, the company is seeking to improve brand perception in premium markets such as Europe. An entry into Formula 1 could provide significant global exposure and strengthen its technological credentials.
According to Bloomberg, BYD’s preferred approach would likely be to acquire an existing team rather than build one from the ground up, given the financial and regulatory barriers associated with entering the championship.
Establishing a new Formula 1 team can cost around $500 million per season, excluding development and operational expenses. For comparison, General Motors reportedly paid about $450 million in anti-dilution fees to secure a place on the grid for its Cadillac team starting in the 2026 season.
One possible acquisition target could be Alpine F1 Team, currently owned by Renault. Alpine also competes in the FIA World Endurance Championship, which includes the renowned 24 Hours of Le Mans.
The team has already announced it will leave the endurance racing series at the end of the season and plans to become a customer team using engines from Mercedes-Benz starting in 2026. However, Renault CEO Luca de Meo has previously said the team is not for sale and reportedly rejected a $1.2 billion offer.
Bloomberg also reported that BYD is examining participation in the World Endurance Championship as another potential entry point into global motorsport. Several Chinese manufacturers have shown growing interest in international racing, including Chery and brands linked to Geely.
The potential entry also coincides with new technical regulations introduced for the 2026 Formula 1 season, which increase the role of electrification in the sport’s hybrid power units. The new MGU-K system will deliver 350 kW to the rear wheels, up from 120 kW, meaning roughly half of the power unit’s output will come from the electric motor.
For BYD, which develops its own batteries, motors and power electronics, the increased emphasis on electrified powertrains could make motorsport research more relevant to its core automotive technologies.
The company has already signalled performance ambitions through vehicles such as the Yangwang U9, an electric supercar capable of nearly 3,000 horsepower, and through the development of its own off-road racing circuit in China.
Mohammed Ben Sulayem has previously expressed support for a Chinese manufacturer joining Formula 1, describing it as a natural step as the sport expands globally following the addition of Cadillac as the 11th team in 2026.
