Chinese EV manufacturer BYD held talks with F1 leadership in April 2026 and is weighing a grid entry – either as a 12th team or through an acquisition. The commercial case extends beyond racing: F1’s Chinese fanbase grew 39 percent to 221 million declared fans, and the IP opportunity for Chinese athleisure brands is the bigger story.
F1’s worst kept secret: BYD is coming?
Chinese electric vehicle giant BYD held private talks with F1 boss Stefano Domenicali and FIA chief Mohammed Ben Sulayem, as was widely reported in April 2026, and is now mulling a grid entry: Either as a new 12th team, or through the acquisition of an existing outfit like Alpine.
Fulfilling a longtime ambition of the FIA (Fédération Internationale de l’Automobile), President Ben Sulayem told Macau Daily that the potential F1 entry of Chinese EV giant BYD would fill a gap, for both the championship and China.
Sulayem admitted to the media during a visit to Macau’s Coloane Karting Track that negotiations have continued for “quite a long time,” and confirmed that a Chinese manufacturer in F1 would satisfy the FIA’s ambition for American and Chinese representation alongside the European mainstays.
The opportunity, however, does not stop at the starting grid, but also hands Chinese athleisure its moment in the spotlight.
Why China’s F1 fanbase is athleisure’s biggest opportunity
Formula 1’s fanbase in China has surged by 39 percent in a single year, with over 221 million declared fans. 46 percent are female, 40 percent are aged 16–34, and half have discovered the sport since 2020. This makes F1 a prime target for athleisure and lifestyle players.
At the top of F1’s merchandise market, luxury goods conglomerate LVMH signed a 10-year global partnership with Formula 1 starting in 2025, Puma holds the central licensing contract at an estimated $10 million annually (€8.7m), and Adidas secured deals with Mercedes (around $30m/€26m per year) and Audi (roughly €25m from 2026).
For Chinese brands like Anta and Li Ning, the picture is clear. The commercial prize in F1 is vast, but the opportunity to enter is time sensitive, with major global brands already locking in long term deals. Li-Ning recently secured the Chinese Olympic Committee partnership for 2025 to 2028 at roughly $112 million (€98m), proving that domestic players have both the ambition and the means. F1 is the next logical target.
Siobhan Churchill, Associate Director at Shanghai-based consumer insights agency Yuzu Kyodai, argues that “The real F1 opportunity lies beyond traditional merchandise.” Spanning instead unisex and feminine-fit apparel, home lifestyle products, and fan accessories.
Asian brands need fresher, more modern collaborations to rival Adidas and Nike in the merch space, adds Churchill.
“Chinese F1 fans mirror their Japanese counterparts, where idol patronage signals devoted fandom and passive engagement without merchandise is uncommon. A dynamic F1 has increasingly tapped into in recent years,” Churchill noted.
A unique fandom has emerged in China characterized by merchandise trading, regional fan clubs, and brand revival, with fan groups organized around specific teams or drivers and merchandise designed accordingly. The trading culture often leaves international visitors stunned.
Driver partnerships extend the momentum, with Zhou Guanyu, China’s debut full‑time F1 driver now a Cadillac F1 reserve, an ambassador for Lululemon China, also often sporting athleisure rivals Alo Yoga in his downtime and using its hydration line to spotlight his wellness routine, generating notable buzz across the F1 world.
Three ways BYD could enter F1 – and why one beats the rest
Junsong Chen, Dean of the School of Intelligent Finance and Business, maps out BYD’s three options for joining F1. The first, building a new team, requires over $450 million (€394m) but yields full IP ownership and brand equity rivaling Ferrari and Mercedes. The second, title sponsorship of a mid‑grid team, costs $40 million–$60 million annually (€35–€52.6m) and reduces entry risk, though it splits profits and weakens brand exposure. The third – supplying hybrid powertrains – carries moderate expense but offers limited visibility and almost no merchandise or licensing opportunities.
“An in‑house team offers the best path to long‑term global premium growth, creating a full commercial loop through races, retail, and cross‑brand collaborations that delivers Chinese automakers the most stable commercial platform,” explains Chen.
Chen proposes three ways to monetize China’s huge F1 fanbase: Start with affordable small goods and Chinese‑style limited merch to lower the buy‑in; then online Douyin and Tmall livestreams paired with offline pop‑ups and dealerships; and finally, F1 merch purchases linked to car discounts and maintenance vouchers, plus exclusive collectibles for BYD owners.
The real prize isn’t the podium – it’s who owns the IP
BYD’s potential F1 entry could reshape Chinese manufacturing itself. Four domestic categories stand to benefit most, including EV refitting parts makers, local streetwear and sportswear labels, digital accessories producers, and trendy toy and home goods companies.
Instead of collecting thin OEM (original equipment manufacturer) processing fees, these brands could launch independent licensed product lines.
The shift is already visible in Mizuno’s 2026 partnership with Honda Racing Corporation to supply unified staff uniforms across F1, MotoGP, IndyCar, and other categories, proving that Asian sportswear brands are actively integrating into F1’s commercial and operational framework through official supply deals, rather than remaining passive observers.
“In the past, Chinese factories collected meager processing fees while foreign brands pocketed all profits from design, sales channels, and IP rights,” Chen stressed.
F1’s IP plus Douyin and Tmall now let local brands own the full chain from design to direct sales. For Chinese factories that spent decades making the world’s sports gear while collecting only processing crumbs, BYD’s F1 entry would be no mere automaker milestone, but rather the starting gun on a new commercial race.
All currency conversions represent XE.com mid-market values at the time of drafting, June 26, 2026. The views expressed are those of the author and do not represent the editorial position of SGI Europe.
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