BYD Pondering F1 Entry Bid To Spur Overseas Sales

The Cadillac F1 Team made its Formula 1 debut at last weekend's Australian Grand Prix with a respectable 16th-place finish from Sergio Pérez. General Motors might not be the last major automaker to join the world championship — BYD is exploring the possibility of entering F1. The rising Chinese behemoth is looking towards international motorsport to raise the brand's profile overseas. Grand Prix racing isn't the only destination on BYD's radar, with the FIA World Endurance Championship floated as another option. 

As with any racing program, cost would be a significant concern. Formula 1 has an operational cost cap of $215 million for the 2026 season. However, there are plenty of costs exempt from the cap that could drive the annual budget close to $500 million. Travel, marketing, as well as FIA entry and license fees are exempt. The salaries of each team's drivers and the three highest-paid staff members are also exempt. According to Bloomberg, BYD has yet to make a final decision and might not join any racing championship.

Opting for WEC and attempting to win the 24 Hours of Le Mans could be a more affordable option. Alpine, which will be contesting both F1 and WEC, is spending an estimated $35 million per year on its two-car Le Mans Hypercar program. However, the French brand is ending the WEC program after this season.

The potential $500 million annual bill doesn't include the initial expenditure of constructing a team factory and an operational base in Europe, if the BYD team were headquartered in China. A simple way to reduce startup costs would be to take over an existing team. While Cadillac's team was founded from scratch, Audi also debuted in Melbourne after buying Sauber. It should be noted that Cadillac is currently racing with Ferrari power units while Audi debuted with its own engines.

Alpine could be a potential target of a BYD takeover. Private equity firm Otro Capital is looking to sell is 24% stake in the French factory team. Mercedes team boss Toto Wolff and ousted Red Bull team principal Christian Horner have been rumored to be bidders for the stake. Renault has been gradually stepping away from its F1 involvement, controversially shutting down its historic Viry-Châtillon engine-building facility. While Alpine continues to race as a Mercedes customer team, it's not a situation primed for long-term success.