China’s BYD explores entering Formula 1 in company’s first push into motor racing

BYD Company is examining options to enter competitive motorsport including Formula 1 and endurance racing, in an effort to boost the Chinese brand’s appeal globally, according to people familiar with the matter.

The carmaker is looking at several options following its rapid growth outside its home market and competitive racing’s continuing shift towards hybrid engines, the people said, asking not to be named when discussing private information.

These range from the World Endurance Championship, which includes the 24 Hours of Le Mans race, to F1, either through building its own team or potential acquisitions, the people added.

Any move by BYD would be a rare direct attempt by a Chinese manufacturer to take on a sport dominated by European and United States teams. Carmakers from the country have had sporadic interest in motorsport. Geely successfully competes in international touring car racing through Cyan Racing, formerly the Volvo factory team, and Nio Incorporated won the driver title for the inaugural Formula E electric championship in 2015.

The potential costs of entering F1 could be a significant obstacle for BYD, according to one of the people. Developing and entering a car often takes years of negotiations and costs as much as US$500 million a season.

No decision has been made and the company may not decide to enter any competition. A BYD spokesperson did not respond to a request for comment.