Hyundai Eyes Formula 1 Entry with Potential Team Acquisition
South Korean auto giant Hyundai is reportedly considering a significant expansion into the world of Formula 1, with rumors circulating about the company’s interest in purchasing a Formula 1 team. Currently, Hyundai competes at the highest level in the FIA World Rally Championship, where it has enjoyed success with its i20N model since 2014, including back-to-back manufacturers’ titles in 2019 and 2020 under the guidance of ex-Renault F1 Team Principal Cyril Abiteboul.
According to F1 reporter Joe Saward, Hyundai is now setting its sights on Formula 1 success by buying its way into the sport. However, the challenge lies in the fact that no Formula 1 teams are currently up for sale, making an immediate entry into the sport difficult. Nevertheless, signaling its intent to join Formula 1 by acquiring a team could endear Hyundai to Formula One Management (FOM), particularly given the lukewarm reception to Andretti’s plans to start a team from scratch.
Another potential hurdle Hyundai faces is the need to inherit a power unit from a rival manufacturer if it were to enter the sport in the near future. However, Formula 1 has a precedent for manufacturer allegiances, such as Honda and Aston Martin, so a partnership with an existing OEM is not out of the question.
From FOM’s perspective, automotive manufacturers expressing interest in joining Formula 1 is seen as a more desirable path than the alternative, as exemplified by Andretti’s bid.
Andretti’s proposal to join the Formula 1 grid in 2026 was put on hold, with the American racing outfit encouraged to reapply once a General Motors power unit was ready to go.
The 2026 engine regulations, which focus on hybrid technology, were designed to attract automotive manufacturers and played a significant role in Audi’s decision to enter Formula 1 after decades of hesitation. Similarly, Honda returned to Formula 1 in full force, and Ford partnered with Red Bull powertrains.
Andretti’s bid was also hindered by FOM’s belief that Formula 1 would bring more value to Andretti than the other way around. However, this may not be the case for Hyundai, which has grown to become the fourth-largest auto manufacturer in the world. Its South Korean home positions it in a region Formula 1 is keen to expand, as evidenced by South Korea’s interest in hosting a Grand Prix in the city of Incheon.
Formula 1 successfully expanded into the U.S. without the help of an auto manufacturer, and a Hyundai Formula 1 entry could prove timely. Moreover, the last time South Korea was present on the Formula 1 calendar, between 2010 and 2013, Hyundai did consider an entry before being rocked by a bribery case. If Incheon’s South Korea GP bid is successful, the dominoes could fall to add another automotive powerhouse to the Formula 1 grid.
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