【1211】BYD rumored to enter top-tier racing with F1 and WEC, boosting global brand presence; the automotive industry is expected to invest at least 3.9 billion yuan

Mainland China’s leading electric vehicle company BYD Co. Ltd. (01211) is reportedly studying participation in top-tier racing events such as Formula 1 (F1) and the World Endurance Championship (WEC) to enhance its global brand appeal.

According to Bloomberg, as BYD’s overseas business rapidly expands and develops hybrid engines, the company is considering forming its own racing team or acquiring a racing team to compete in races. Sources familiar with the racing industry indicate that BYD’s participation could involve significant costs, potentially serving as a barrier to entry. Negotiations are expected to take time, with a minimum expenditure of $500 million (about HKD 3.9 billion).

Racing has traditionally been dominated by European and American teams, with Chinese teams being relatively rare. In the past, mainland automakers have expressed interest in racing participation. For example, Geely Automobile (00175) has participated in the International Touring Car Championship through Cyan Racing, a luxury car manufacturer’s team, and NIO (09866) competed in Formula E in 2015, winning the main driver championship.