- EV slowdown in Europe means “Formula E needs to crack the Chinese market”
- Agag wants to see a manufacturer like BYD join the sport in the coming years
Formula E sees major opportunity in China, similar to Formula One’s rapid growth in the US, according to series founder Alejandro Agag.
With European manufacturers facing a slowdown in electric vehicle (EV) sales due to the rise of more affordable alternatives from China, Agag has identified a trend that could benefit Formula E if it moves quickly.
“People will adopt electric cars massively when they are cheaper and better than combustion cars or the alternative – that’s already happening in China,” said Agag, who was speaking at the Autosport Business Exchange.
“Every new car you see on the road is electric. The big opportunity for Formula E is in China, like the big opportunity for Formula One has been in the US.”
Since Formula One started focusing on the US market, it has experienced exponential growth. The series’ annual revenue rose for the fourth running to reach US$3.65 billion in 2024, boosted by a significant influx of US-based partners. Last year, Forbes estimated that the average Formula One team was worth US$3.6 billion, while Sportico came in slightly lower at US$3.42 billion on average.
While Formula E is far from reaching those figures, Agag sees huge potential if the championship doubles down on China, noting that the series already hosts three races over two weekends in Shanghai and Sanya.
“The whole raise of valuations, the 350 new partners out of which 100 and something came from the US to Formula One, it’s a consequence of Formula One being able to crack the US market,” continued Agag. “Formula E needs to crack the Chinese market because Chinese manufacturers are not going to go into Formula One, they don’t make combustion cars, they only make electric cars.
“If we manage to bring some of those manufacturers into motorsport, we will be doing a big service to the whole of motorsport because we are the entry for the Chinese manufacturers into motorsport.”
When asked whether a manufacturer like BYD could join the Formula E grid in the future, Agag said it would be “the next step” he’d like to see. However, he acknowledged that Chinese manufacturers’ interest in motorsport tends to fluctuate.
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