Mar 12, 2026
3 min read
From Beijing, BYD headquarters hear rumors that a Formula 1 entry is possible for the all-electric car manufacturer.For the company, this could be the first real investment in high-level motorsport.
From Beijing, rumors are swirling from BYD's headquarters about the all-electric carmaker's possible entry into F1.For the company, this will be the first real investment in high-level motorsport.According to several industry sources cited by international media, the company is exploring various strategic options, ranging from creating new teams to acquiring existing ones.
Ideas on the table and possible scenarios
BYD's entry into F1 depends on two factors.The first is BYD's clear claim as a major electric car manufacturer.The second is the increased importance of the electric component in F1 with the new regulations.It goes without saying that the entry into motorsports is meant to increase the flow of engineering research and development.
There are two entry options.The first hypothesis is to buy an existing team in Formula 1, a strategy similar to that adopted by Audi and Sauber.
At the same time, the option of survival is also considered.The company is actually evaluating a program in the FIA World Endurance Championship (WEC), the championship that includes the 24 hours of Le Mans.This scenario may be more consistent with the company's technological strategy, as the Hypercar category and the new LMDh class manufacturers may develop hybrid solutions and advanced energy systems.
How much does a Formula 1 race cost?
The main hurdle for BYD may be the cost of entering the category.In recent years, Formula 1 has introduced a number of financial rules that limit the operational expenses of teams, but the initial investment remains very high.
Entry into the category first requires payment of the so-called "anti-dilution tax", a fee that aims to compensate already present teams for the reduction of their share of commercial income.This amount is currently set at approximately $200 million, although several teams believe that the real value of entering the league is now much higher.
Investments in infrastructure, personnel and technical development must be added to this figure.Even with the budget limit presented by the FIA, increased to $200 million in 2026, the actual cost of the entire program is often more than $200 million per year considering engine, marketing and industrial costs.We have a total entry and participation cost of 600 million in the first year alone, and this has to exclude salaries.
For global manufacturers, however, the investment can have significant returns in terms of visibility, sales and technology development.It is no coincidence that Formula 1 has attracted new brands such as Audi and Cadillac from the 2026 season.
Economic figures of the giant BYD
While entry into Formula 1 requires a lot of money, BYD is one of the automakers that can benefit without financial problems.
The Chinese group achieved revenue of 777.1 billion yuan, or about $107 billion, in 2024, up 29% from the previous year.During the same period, net profit increased by 34%, exceeding 40 billion yuan.
Growth continued in 2025.In the first nine months of the year, revenue exceeded 566 billion yuan (about $79.5 billion), up 13% from last year.
From an industrial perspective, BYD has become a global force.In 2025, it will overtake Tesla to become the world's largest electric vehicle manufacturer in terms of units produced, selling millions every year and growing its strong presence in international markets.
The group's strategy is based on a strong vertical integration: local manufacturers of batteries, electric motors and electronics, investing heavily in research and development.In the first half of 2025 alone, R&D investment exceeded 30 billion yuan.
Strategic choices for a global vision
Therefore, including BYD in F1 and/or Wec will represent, above all, a global investment project.The company is already one of the giants of the global automotive industry, but the brand remains less recognized in the Western market than historical (albeit large) manufacturers.
Formula 1, with over twenty races spread over five continents and a growing global audience, offers a unique stage to strengthen the technological perception of the brand.Of course, there will also be Formula E, always organized by the FIA and all-electric, but frankly it is a world championship that does not have the same visibility as F1;thus the change in regulation requested by Nicolas Tombazis is starting to bring the first expected results, entry and interest of new car manufacturers.
