The FIA proposed the placement of a budget cap in Formula E, similar to that in Formula 1, with the former to be implemented for the 2023/2024 season, during the second season of the Gen3 regulations.

This move comes as a result of team budgets quadrupling in Formula E, with the biggest manufacturers spending in excess of £40 million per season, creating an experienceable gap between the biggest and smallest manufacturers.

Behind the move are FIA president Jean Todt and director of Formula E and innovative sport projects Frederic Bertrand, who outlined the working cost cap budgets for private race teams and the manufacturers.

 “For the moment, the figures we discuss are around 13 to 15 [million euros] for teams and 20 to 25 for manufacturers [on a two-year rolling basis],” Bertrand explained. “But then there are plenty of questions on how many exclusions we have to consider.”

The move is set for 2023 because teams already have access to the central FIA data from suppliers Williams Advanced Engineering (battery), Spark Racing Technology (chassis), and Hankook (tires), and have presumably started the development of the 2022 cars. The cost cap is also set to mirror Formula 1’s cost cap, excluding driver and team boss salaries, alongside travel logistics.

There was speculation that the cost cap was a result of manufacturers leaving the sport, the most notable examples being Audi and BMW. Todt explained that such exits are inevitable in motorsport.

“That is the history of motor racing – they come, they leave,” Todt explained, likening the situation to a restaurant business. “It’s like you have a restaurant and the clients are changing.

“Not only in Formula E, everywhere. You have that in rallying, you have that in sportscars, you have that in Formula 1.

“The only thing we make sure is that they are happy to come, and they get good food. So that’s what we try to do.”

I am an Indian Motorsports fan with an unhealthy curiosity over all things quick and complicated. I obsess over Star Wars in my free time.