The Chinese giant plans to enter Formula 1, they want to compete with Ferrari and McLaren

The Perfect Storm: Prestiž brand and new technical rules

Although BYD sells millions of vehicles and is experiencing explosive growth in foreign markets, with more than a million units sold outside China last year, the perception of the brand in the West still lags behind the technological reality. They see entry into Formula 1, the pinnacle of motorsport, as the fastest way to change that perception. Similar to how Hyundai transformed its image through the World Rally Championship (WRC). from a budget car maker to a respected engineering play, BYD is hoping that competing with Ferrari and Mercedes could do the same for them.

The time for such a move seems ideal. New technical rules that come into force in 2026 drastically increase the role of electrification. The power unit will be roughly split 50-50 between the 1.6-liter V6 turbo engine and the electric motor (MGU-K), with power increasing from 120 to 350 kilowatts. For a company that itself develops and manufactures batteries, motors and all accompanying electronics, this technological twist makes Formula 1 more relevant than ever to their core business.

Two ways to the grid, one is much more realistic

BYD is considering two ways to enter the elite competition: building its own team from scratch or acquiring an existing team. The first option, although it sounds tempting, carries enormous obstacles. It is estimated that starting and running an F1 team costs up to 500 million dollars per season. In addition, the approval process is long and arduous, as was recently experienced by General Motors with Cadillac, whose application was initially rejected before finally being approved for 2026. General Motors paid 450 million dollars just for the so-called “anti-dilution” fee, which compensates the existing teams. Precisely because of these financial and political obstacles, the purchase of the existing team appears to be a much more likely scenario.

Alpine F1 team as keyč in the lock

When talking about potential takeover targets, one name stands out – Alpine. The Renault-owned team competes in both Formula 1 and the World Endurance Championship (WEC), but more have announced their withdrawal from the WEC at the end of this season. In addition, from 2026, Alpine will give up the development of its own engines and will become a client of Mercedes. Many analysts see these moves as a sign that Renault’s long-term commitment to the project is weakening, even though as CEO Luca de Meo publicly insisted the team was not for sale, reportedly rejecting a $1.2 billion offer. For BYD, the purchase of Alpine would represent a turnkey solution, with an existing factory, staff and a place on the grid.

Evidence snage s Nürburgringa

The idea that BYD is on the same grid as the giants of motorsport may sound unrealistic, but the Chinese company is more. has proven that it knows how to produce extreme performance cars. Their luxury sub-brand Yangwang is behind the U9 Xtreme, an electric supercar that set the production EV record on the legendary Nürburgring Nordschleife, beating the Rimac Nevere’s time by around six seconds. With almost three thousand horsepower and a tested maximum speed exceeding 480 km/h, the Yangwang U9 clearly shows the company’s engineering muscle. That sub-brand would most likely also be used for the F1 project, serving as a showcase for the most advanced technology.

BYD’s interest comes at a time of grid expansion, with Audi taking over Sauber and Cadillac’s debut. The president of Fia, Mohammed Ben Sulayem, openly welcomed the idea of ​​the arrival of the Chinese manufacturer, calling it “the next logical step” for the sport. If BYD succeeds in its plan, it could permanently change the perception of the brand on a global scale and further accelerate the electrification of the very top of motorsport.