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.
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.