Chinese automotive giant BYD is increasingly being linked with a future entry into Formula 1, with the FIA continuing to show interest in expanding the grid with a team backed by China, it is since been discovered that a possible link exists between the Chinese manufacturer and former Red Bull boss Christian Horner.
The manufacturer has already held discussions relating to a potential programme, and recent appearances involving former Red Bull Racing team principal Christian Horner have further intensified speculation surrounding the project.
However, BYD’s deteriorating economic situation in China could pose a significant challenge to any long-term commitment to Formula 1.
The FIA continues to push for Chinese representation in F1
The prospect of a Chinese manufacturer joining Formula 1 gained significant attention when Mohammed Ben Sulayem, the president of the FIA, publicly endorsed the prospect of a Chinese team becoming the twelfth entrant on the grid.
Following the confirmation that Audi and Cadillac will join Formula 1 in the coming years, BYD has quickly emerged as another manufacturer exploring the opportunity to enter the championship.
Senior figures within the company have referenced Formula 1 publicly in recent weeks, and reports suggest that the manufacturer has been developing plans to expand into motorsport.
The brand could become the 12th team in the future, executive vice president Stella Li revealed that she had held direct talks with the sport’s leadership.
“We met Stefano Domenicali in Shanghai. We’re always close and in contact,” she told Sport Mediaset.
“I like Formula 1 because it’s about passion, culture, and people dream of being in Formula 1. Yes, it’s something we’re discussing.”
Li also underlined the technical appeal of the championship.
“It’s a real opportunity to test our technology.”
The company’s ambitions reportedly extend beyond Formula 1, with BYD also believed to be considering future participation in the FIA World Endurance Championship.
Christian Horner’s appearance has fuelled speculation
One of the clearest public signs of BYD’s motorsport ambitions came during the 2026 Cannes Film Festival, where the manufacturer organised a high-profile promotional event.
Among those present was Christian Horner, whose appearance alongside BYD executive vice-president Stella Li immediately sparked speculation about his potential involvement in the project, either in an advisory or leadership capacity.
During the event, Li reportedly confirmed that BYD was “in close contact with Formula 1 to discuss a potential entry onto the grid”.
This statement strengthened the expectation that the company’s interest goes beyond preliminary discussions and could evolve into a serious future bid.
Declining sales and profits could threaten F1 project
Despite the growing optimism surrounding a Formula 1 entry, BYD is simultaneously facing mounting pressure in its domestic market.
The manufacturer has recently experienced falling profits and slowing sales growth in China, creating uncertainty over how aggressively it can continue to fund international expansion projects.
Even under the current cost cap regulations, Formula 1 entries require enormous long-term investment commitments. Setting up a new team, developing infrastructure, and recruiting senior technical staff would still require hundreds of millions of pounds over several seasons.
Consequently, BYD’s financial performance in China will ultimately determine whether the company proceeds with its Formula 1 ambitions or postpones the project entirely.
European expansion remains central to BYD’s strategy
Despite domestic difficulties, BYD continues to invest heavily in Europe as part of its wider global expansion strategy.
The company has prioritised local manufacturing and brand growth across European markets, viewing Formula 1 as a potentially powerful marketing platform that could increase its international visibility.
The championship’s rapidly expanding global audience, combined with Formula 1’s growing popularity in key automotive markets, makes the series particularly attractive to manufacturers seeking worldwide exposure.
For BYD, a Formula 1 programme could therefore serve sporting and commercial purposes, accelerating its global brand recognition at a time of intense competition within the electric vehicle sector.
In recent years, Formula 1 has aggressively pursued new manufacturers as the championship continues to expand commercially around the world.
A successful BYD entry would represent a significant shift in the global landscape of the sport and would strengthen Formula 1’s presence in the Chinese automotive market.
The coming months will therefore be crucial in determining whether BYD will become the next major manufacturer to enter Formula 1 or whether economic realities will force the project to be put on hold.
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Alex Stanton is a Formula 1 journalist at TJ13 with a focus on the financial and commercial dynamics that underpin the sport. Alex contributes reporting and analysis on team ownership structures, sponsorship trends, and the evolving business model of Formula 1.
At TJ13, Alex covers topics including manufacturer investment, cost cap implications, and the strategic direction of teams navigating an increasingly complex financial environment. Alex’s work often examines how commercial decisions translate into on-track performance and long-term competitiveness.
With a strong interest in the intersection of sport and business, Alex provides context around Formula 1’s global growth, including media rights, expansion markets, and manufacturer influence.
Alex’s reporting aims to explain the financial realities behind headline stories, helping readers understand how money, governance, and strategy shape the competitive order in Formula 1.
