BYD’s interest in Formula 1 has been building for months.
The Chinese electric vehicle giant confirmed active discussions with the sport’s leadership earlier this year.
BYD Executive Vice President Stella Li had a meeting with F1 President and Chief Executive Oficcer Stefano Domenicali in Shanghai during the Heineken Chinese Grand Prix in March.
Three potential entry routes have been identified – a new 12th team built from scratch, an acquisition of an existing outfit, or a power unit supplier role.
Former Red Bull Racing Team Principal Christian Horner has since been linked with a potential tie-up with BYD as the head of a 12th team project, while FIA President Mohammed Ben Sulayem has long advocated for a Chinese manufacturer’s presence on the grid.
The story has gathered considerable momentum. But Mark Thomas, Managing Director of S2M Consulting – a China-focused sports marketing agency operating in the country since 1999 – urges caution.
“I think firstly you have to try to dissect the smoke from the fire,” he told Sector.
“There are definitely some exploratory investigations and discussions. But nothing in my network is saying it’s imminent. I just cannot see it particularly happening imminently – or maybe not at all.”
The technical case
When Li met Domenicali in Shanghai in March, her rationale was specific: “It’s a real opportunity to test our technology,” she told reporters at the time.
The technology she was referring to was the 2026 regulations – the most significant electrification shift in F1’s history. The motor-generator unit now contributes 350kW to the rear wheels, up from just 120kW under the previous rules.
For a company that builds its own batteries, motors and power electronics in-house, that made F1 directly relevant to BYD’s core business in a way it had never been before.
Those regulations are already being unwound. An agreement in principle reached in May will shift the power split to 60/40 in favour of combustion from 2027, reducing electrical deployment by 50kW.
There’s the whole situation with the rules and the engine power and the balance between hybrid and electric – and all that stuff is going to be played out with BYD watching.
Mark Thomas
V8 engines with significantly diminished electrification are being discussed for the 2031 rule cycle – a direction that would take F1 closer to an 80/20 combustion-electric split than anything resembling the platform that attracted BYD’s interest.
Thomas sees the direction of travel as fundamental to the case against.
“There’s the whole situation with the rules and the engine power and the balance between hybrid and electric – and all that stuff is going to be played out with BYD watching,” he said.
“There’s no clear technical platform where BYD can display what’s great about their products.”
The specific capabilities BYD has built its reputation on – fast charging, battery management, energy density – are not areas Formula 1 tests or rewards. The series has moved toward hybrid power but not in the direction BYD specialises in.
“Some of the most innovative stuff for them is things like fast charging and I don’t think Formula One answers that question from a brand or technical perspective for them. The whole hybrid thing has left the building years ago at BYD.
“If there’s any company in the world that’s all in on electric, it’s BYD.”
The commercial case
Beyond the technical fit, Thomas questions whether BYD’s current brand positioning aligns with what F1 delivers commercially.
The sport’s premium audience – wealthy, globally mobile, brand-aware – is not where BYD has historically directed its marketing investment.
“BYD have done a lot of football sponsorship,” Thomas said.
“At the moment it’s a sort of more low to middle end product. Football works really well – you’re aiming at the working man, the young family sort of market.
“I think there’s probably other better sponsorship and partnership fits for them globally at the moment.”
The Formula E alternative – which would better match BYD’s all-electric identity – has also proven unworkable for Chinese brands.
“There’s been history between China and Formula E. Four or five teams were funded and run by Chinese companies and they’ve all gone defunct. Formula E doesn’t work for them,” explained Thomas.
The media narrative
Thomas believes the BYD story has taken on a life of its own partly because the ingredients look so compelling from the outside.
F1’s China momentum, BYD’s global ambitions, and the sport’s shift toward electrification appeared to point in the same direction.
“I think it’s almost been picked up by the global motorsport media. And it’s turned into a really hot story. I think there’s only a very small amount of truth,” he said.
Thomas was present at the Chinese Grand Prix this year and saw first-hand how the event landed.
“It knocked me sideways in terms of the successful state of play that the Chinese Grand Prix is at the moment,” he said.
“If I was Stella looking there, I would think, ‘I’d love to be involved in this, this is the ultimate automotive motorsport’.
“But when you pick through the practicalities of that, that’s where I feel it becomes a little bit unwoven.”
“From my point of view, it doesn’t make sense for either party. And it won’t happen – but if they do, I would say this is not a partnership made in heaven.
“They would need to be really, really very careful and do a lot of due diligence on both sides to make sure it’s the right fit, commercially, technically and for many other reasons beside.”
