Motorsport Economy

The motorsport economy refers to an integrated economic model driven by motorsport as its core catalyst, spurring the coordinated growth of related sectors including race operations, brand marketing, cultural tourism, vehicle tuning, and manufacturing. Covering everything from on-track competitive racing to the broader consumer ecosystem of dining, accommodation, transport, retail, and entertainment, it represents a crucial growth driver bridging the automotive aftermarket and the sports industry.

Policy Support

In June 2026, nine government ministries and agencies, including the Ministry of Commerce, jointly rolled out the "Notice on Several Measures to Foster and Expand Automotive Aftermarket Consumption", explicitly identifying "the active development of motorsport" as a priority focus area. The initiative outlines a comprehensive development framework spanning the establishment of a multi-tiered racing ecosystem, streamlined event management mechanisms, the creation of new motorsport consumer touchpoints, and the development of local racing talent. Concurrently, among the 40 pilot cities selected for automotive circulation and consumption reform, locations like Chengdu and Guangzhou were tasked with differentiated pilot initiatives such as motorsport development and NEV vehicle modifications respectively.

Prior to this, the General Administration of Sport had introduced several supportive policies. Official responses in July 2025 revealed that the sports authority, in collaboration with relevant agencies, was evaluating crash safety and battery fire risks in new energy racing, with plans to introduce standardized vehicle technical regulations in 2026 to ensure the safe execution of NEV competitive events.

Market Size and Industry Landscape

China's auto and motorcycle racing sector is undergoing exponential growth. According to the 10-Year Development Plan (2020–2029) by the Federation of Automobile and Motorcycle Sports of China, the industry's total valuation is projected to hit RM500,000,000,000 by 2029. By then, the country is expected to house over 30 FIA- and FIM-homologated circuits, with registered racing drivers reaching 30,000 and active race teams expanding to 500.

As of 2025, China boasts 21 FIA-certified circuits across various grades, ranking among the top three globally. The General Administration of Sport has certified 35 driver training academies covering seven key categories—circuit racing, rallying, cross-country, drifting, karting, and motocross—training roughly 2,000 drivers in 2024. While a nationwide training framework has taken shape, a deficit remains in homegrown elite drivers, race engineers, and event operations personnel, with podium finishes in international events still heavily reliant on foreign talent.

Key Case Studies and Economic Impact

The F1 Chinese Grand Prix stands as the benchmark for the domestic motorsport economy. The 2026 F1 Chinese Grand Prix drew a record-breaking three-day attendance of over 230,000 spectators—a near 20-year high—raking in RM190,000,000 in ticket sales, up 35% year-on-year. International visitors accounted for roughly 16% of the crowd, while out-of-town domestic spectators made up 64%, driving official merchandise sales past RM2,000,000 daily. According to the "2025 Shanghai Sports Events Impact Assessment Report", the Grand Prix generated a direct economic impact of RM2,470,000,000 and an indirect economic boost of RM6,910,000,000.

Chengdu Tianfu International Circuit is Western China's sole FIA Grade 2 homologated facility. In 2025, the venue welcomed 500,000 visitors, raking in RM50,000,000 in direct revenue and driving over RM300,000,000 in surrounding commercial spending. By offering accessible public programmes such as open track days, track-car rentals, and go-karting, the circuit has significantly lowered entry barriers—a 25-minute session starts at RM600, allowing regular Class C1 driving licence holders to pilot entry-level race-prepped machines. In 2025, over 400 grassroots enthusiasts transitioned from karting to full-fledged circuit driving, contributing more than RM10,000,000 in racing licences, tuning, and professional coaching. The on-site high-performance automotive industrial park currently houses nearly 40 enterprises, including pro race teams and performance tuning R&D outfits, completing a closed-loop ecosystem of "race traffic generation – industry integration – consumer spending".

The Taklimakan Rally, China's premier long-distance international cross-country rally raid, has delivered continuous tourism growth for host regions: in 2023, route destinations recorded 1.1 million tourist visits and RM530,000,000 in tourism receipts; by 2025, the event drew 4.11 million visitors, generating RM2,944,000,000 in tourism revenue.

Guangzhou Conghua International Circuit has attracted over 400,000 visitors and spurred over RM400,000,000 in consumer spending since Phase 1 opened in 2023, facilitating the commercial lease of approximately 154 mu of community land and generating RM9,390,000 in additional income for local villagers.

Motorsport as an Industrial Catalyst

Motorsport remains an indispensable platform for brand building and commercial value creation. Following CFMOTO's triple championship triumph in the 2024 MotoGP Moto3 class, the marque's overseas petrol motorcycle deliveries reached 159,500 units in 2025, yielding RM3,587,000,000 in revenue (up 21.88% YoY), with gross margins in North America and Europe hitting 29.30% and 34.95% respectively—nearly double its domestic margins. Similarly, following Zhang Xue Motorcycles' victory in WSBK, the brand added 12 new showrooms nationwide within 20 days and set a sales target of 60,000 units for 2026.

The momentum is equally evident in the NEV segment. After the production-spec Xiaomi SU7 Ultra conquered Germany's Nürburgring Nordschleife to claim the title of "fastest production EV on the 'Ring", the RM500,000-plus performance EV racked up over 6,900 firm bookings within just 10 minutes of order books opening.

Meanwhile, the 2026 Formula E Shanghai E-Prix saw both race days completely sold out in July, with total attendance approaching 50,000 spectators—doubling YoY to set an all-time record.

Development Trends

The motorsport economy is evolving along three principal trajectories: first, mass accessibility, shifting from elite professional motorsport to experiential consumer activities via karting and track days; second, lifestyle integration, deepening synergies between "motorsport + tourism" and "motorsport + commercial hubs", where race ticket holders enjoy cross-promotional perks across hundreds of local businesses; and third, electrification, highlighted by F1's shift towards nearly 50% electrical power output in 2026, alongside the rapid expansion of series like Formula E and dedicated NEV rallies.