The Chinese automotive conglomerate BYD is reportedly exploring a potential entry into Formula 1 through its electric vehicle subsidiary, BYD Auto. If the project moves forward, the company would become the first Chinese manufacturer to compete in the World Championship as a factory team.
Strategic Ambition
Formula 1 has a new suitor. BYD is looking to expand its footprint in the motorsport business, aiming to showcase its dominance in electric vehicle technology. Following in the footsteps of manufacturers like Geely—which competes in touring cars via Cyan Racing—BYD is currently weighing two strategic options: building its own F1 team from the ground up or acquiring one of the existing eleven teams on the 2026 grid.
The Challenges of Entry
Entering F1 as a new manufacturer requires massive investment. Industry estimates suggest that developing a competitive car from scratch could cost between €500 million and €600 million.
Furthermore, due to the revenue-sharing model of F1, the arrival of a new team—alongside recent entrants like Audi and Cadillac—impacts the existing teams’ bottom line. To mitigate this, the Concorde Agreement requires new entrants to pay a significant “anti-dilution” fee. For instance, Sauber’s recent restructuring involved a substantial financial commitment, highlighting the high barrier to entry for any new player.
The Acquisition Path
The alternative—acquiring an existing team—has a fresh precedent. Audi completed its entry this year by acquiring the Sauber team in a deal valued at approximately €600 million. According to Forbes, the valuation of every F1 team currently exceeds €1.5 billion, suggesting that either entry path could prove highly profitable for the Asian giant.
Building a Sporting Legacy
BYD is no stranger to high-profile sports partnerships. In February 2026, the company signed a major deal with Manchester City FC to become its official electric vehicle partner, a deal reportedly worth €5 million per season. Additionally, BYD served as a primary partner for the UEFA Euro 2024, cementing its status as a major global player in sports marketing.
As the series—owned by Liberty Media—looks to build on its record-breaking financial success, the entry of a brand like BYD would mark a historic shift for the sport, aligning perfectly with F1’s increasing focus on sustainable technology and electrification.