As competition intensifies in the global electric vehicle market, Chinese automaker BYD Company is weighing an unconventional new arena to strengthen its brand: international motorsport.
People familiar with the discussions quoted by SCMP say the EV manufacturer is examining options to enter top-tier racing series, including Formula One and the FIA World Endurance Championship. The evaluation is seen as part of a broader effort by the company to elevate its global profile as it battles rivals such as Tesla for leadership in the fast-growing electric vehicle industry.
The potential pathways under consideration range from launching a Formula 1 team from scratch to acquiring an existing operation or entering endurance racing, which includes the historic 24 Hours of Le Mans. Any move would mark a rare attempt by a Chinese automaker to compete directly in a sport traditionally dominated by European and American manufacturers.
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No decision has been made, and the company could ultimately decide against entering motorsport, according to the people, who asked not to be identified discussing private deliberations.
A new front in the global EV rivalry
The interest in motorsport reflects the evolving nature of competition among electric vehicle manufacturers.
BYD has rapidly emerged as one of the most powerful forces in the global EV market. The company recently surpassed Tesla to become the world’s largest seller of electric vehicles, propelled by strong demand for its battery-electric and plug-in hybrid models across China and international markets.
Yet while BYD has excelled in manufacturing scale and affordability, Tesla has long dominated the global EV narrative through its technology leadership, performance branding, and strong visibility in Western markets.
Entering global racing could therefore serve as another frontier for BYD in that rivalry, offering a platform to showcase engineering capabilities and high-performance technology while boosting brand recognition outside China.
Motorsport has historically played this role for many automakers. Participation in elite racing series often allows manufacturers to demonstrate innovation, durability, and speed under extreme conditions—attributes that can strengthen the appeal of road-going vehicles.
Chinese carmakers have only occasionally ventured into international motorsport. For instance, Geely has achieved success in touring car championships through Cyan Racing, the team that evolved from Volvo’s former factory racing operation.
Meanwhile, Nio made an early mark in electric racing when its team secured the drivers’ championship in the inaugural season of Formula E in 2015.
However, Formula 1 and endurance racing remain among the most technologically demanding and globally visible motorsport competitions, making them far more ambitious targets.
High costs remain a major hurdle
One of the biggest obstacles to a Formula 1 entry is the cost. Developing and operating a competitive team requires years of engineering development, aerodynamic research, and manufacturing investment. Industry estimates suggest the total cost of entering and competing in Formula 1 can reach as much as $500 million per season.
The sport also imposes strict entry requirements and financial rules designed to maintain competitive balance. Existing teams often resist the addition of new entrants because it dilutes the share of prize money distributed across the championship.
This year marks the debut season for Cadillac, which joined the Formula 1 grid after years of negotiations and regulatory approvals.
Because launching a new team is so complex, many automakers prefer to enter the sport by acquiring or partnering with an existing organization.
German manufacturer Audi, for example, recently joined Formula 1 by taking full control of the Swiss-based racing outfit Sauber. Elsewhere, investment firm Otro Capital is exploring potential buyers for its stake in Alpine Racing, the Formula 1 team owned by Renault.
Full team sales remain uncommon, though. The Aston Martin F1 Team—controlled by billionaire investor Lawrence Stroll—has sold minority stakes to investors while maintaining overall control.
Motorsport technology aligns with EV innovation
Another factor making racing more attractive for an electric vehicle manufacturer is the technological direction of modern motorsport. Formula 1 will introduce new power-unit regulations in 2026 that significantly increase the role of hybrid systems and battery capacity, bringing the sport closer to electrified vehicle technology.
Similarly, the FIA World Endurance Championship already relies heavily on hybrid powertrains in its top racing category.
These developments allow manufacturers to experiment with advanced energy management systems, battery technologies, and hybrid powertrains that can eventually influence road-car development.
For BYD, the potential move into motorsport also aligns with its broader efforts to reposition its brand. The company is widely known for producing affordable electric vehicles, but it has increasingly moved into the premium segment through high-performance and luxury models.
Its luxury division, Yangwang, has become central to that strategy. In 2025, the brand tested the high-performance Yangwang U9 Xtreme at a German track, where the vehicle reportedly achieved speeds exceeding 308 mph (496 km/h).
Participation in motorsport could reinforce that performance-oriented image and help shift perceptions of the company from a mass-market EV producer to a technologically advanced automotive brand.
Expanding global visibility
Motorsport could also help BYD build recognition in regions where it is still establishing its presence. The company has been at the forefront of China’s push into overseas automotive markets, expanding sales across Europe, Latin America, and parts of Asia.
However, it currently does not sell passenger vehicles in the United States, largely because of tariffs and regulatory barriers.
Formula 1 could nonetheless offer a valuable marketing platform in the country, where the sport has experienced a surge in popularity following the success of the Netflix series Formula 1: Drive to Survive and the addition of multiple U.S. races to the calendar.
Interest in Formula 1 within China itself has also grown in recent years. The Chinese Grand Prix returned to the calendar in Shanghai in 2024 after a five-year absence, while Zhou Guanyu became the first full-time Chinese driver in Formula 1 in 2022.
The sport’s governing body, the Fédération Internationale de l’Automobile, has also shown openness to greater Chinese participation. Its president, Mohammed Ben Sulayem, said last year that the arrival of a Chinese manufacturer would be a logical next step for the sport following the entry of Cadillac.
For now, BYD’s motorsport ambitions remain in the exploratory stage. Entering global racing would require enormous financial commitment and long-term planning. Yet for a company rapidly expanding its global footprint—and competing with Tesla for technological leadership and brand prestige—the marketing and engineering benefits could be substantial.