Hyundai reportedly eyes spot on F1 grid

Hyundai, the automotive powerhouse from South Korea, is reportedly setting sights on the prestigious world of Formula 1, an ambition fueled by the company’s longstanding motorsport heritage and strategic branding intentions.

According to a report from Motorsport Week, respected Formula 1 journalist Joe Saward has ignited the motorsport community with reports of Hyundai’s potential foray into F1, highlighting their preliminary considerations of acquiring an existing team due to the constrained availability of new team slots.

Hyundai has a storied involvement in global motorsports, particularly its success in the World Rally Championship (WRC) where it secured the manufacturers’ title in 2019 and 2020. This expertise was shepherded under the stewardship of Cyril Abiteboul, formerly of Renault F1, marking profound management acumen in top-tier motorsport competitions.

Since its WRC debut with the Hyundai i20N in 2014, Hyundai has continuously pushed the boundaries of motorsport engineering, building a formidable reputation. Their idea of joining Formula 1 dates back to the period of the South Korean Grand Prix on the F1 calendar from 2010 to 2013, a venture disrupted by unforeseen legal challenges at the time.

The benefits of Hyundai’s potential entry include tapping into the sport’s escalating popularity in Asia, specifically through a speculated partnership tied to a possible Grand Prix in Incheon. Such a move would not only expand Hyundai’s global brand visibility but also align neatly with marketing objectives in key growth markets.

At the same time, the Formula 1 community is witnessing the persistent endeavors of Andretti Global to cement its place on the F1 grid. Despite the FIA’s endorsement for a 2026 debut, Formula One Management’s initial rejection and potential reconsideration for 2028 has put a spanner in the works for the American team. Andretti’s unwavering commitment, evidenced by establishing headquarters in Silverstone, UK, reflects a deep-rooted aspiration to join the F1 echelon.

Implications of Concorde Agreement Changes on New Entrants

Amid swirling rumors of Hyundai’s potential entry into Formula 1, the sport faces pivotal changes due to ongoing revisions to the Concorde Agreement that could significantly impact new entrants. The news comes as Andretti Global continues with its campaign to join the F1 grid, battling against heightened financial and regulatory challenges.

The Concorde Agreement, which dictates the commercial and competitive framework for Formula 1, is under negotiation to alter the terms for new teams. Proposed changes include a drastic increase in entry barriers—from the existing $200 million to a possible $600 million by 2026, and even further, to $700 million by 2028. Additionally, new teams may not be eligible for any prize money in their debut season. These adjustments aim to solidify the sport’s sustainability but could discourage potential newcomers by escalating the financial stakes significantly.

Andretti Global’s aspirations to join Formula 1 have been public for some time, but the proposed revisions cast a shadow over its plans. Despite these hurdles, the American racing team, with its storied motorsport pedigree, is actively building resources and lobbying for more favorable terms that would facilitate their entry into the elite motorsport league during the 2026 or 2028 seasons.