New regulations Group 4, 5, and 6 were introduced for sports car racing categories since 1976. Porsche prepared Porsche 934, 935, and 936 according to each regulation. Among them, Porsche developed a 935 based on a production-based 930 turbo for Group 5, which was allowed extensive modifications on the condition that dimensions such as wheelbase and driving layout and roofline were left based on production-based cars. The Porsche 935 then was supplied to privateers and was active on the world circuit. In Japan, the Porsche 935 participated in the Fuji 500 Mile Race held at Fuji Speedway in 1978. The Porsche 935 painted in pink and white Italya color missed out on winning, but showed a glimpse of its ability and left a strong impression on fans. The Italya 935 also participated in the Group 5 race in Japan in the following 1979 seasons, but was involved in a crash in the next two races and the body and engine were damaged. The Italya 935 left Japan for repairs and moved to the Kremer Racing factory in Cologne, Germany. In the same year, the Italya 935 was upgraded with the best K3 specification which was developed specially by Kremer and won the 24 Hours of Le Mans.
Kremer Racing is based in Cologne, Germany since 1962. Initially, a Porsche dealer operated by the brothers Elvin and Manfrate, but also operated a Porsche tuning shop with its own technology. From 1976, Kremer Racing was involved in the final development of Porsche 935, and the Porsche 935 with special improvement showed its ability as a Kremer Porsche 935. The Kremer Porsche 935K3 is said to be the final evolution. The engine is improved based on the air-cooled flat-six 2994cc, which is water-cooled only on the cylinder head. Equipped with two KKK turbochargers, The Kremer Porsche 935K3 had a maximum output of more than 700 horsepower.
The Itaya 935 with upgraded K3 specification from Kremer Racing participated in the 24 Hours of Le Mans as one of the Kremer 935K3 teams aiming for successive championships winner. The driver were Tetsu Ikuzawa, Rolf Stommelen, and Axel Plankenhorn. The Itaya 935 car number 42 passed the qualifying round in 3rd place and run well in the early stages but unfortunately retired at dawn due to engine trouble. However, the kanji logo on the white body with pink and gray also attracted the attention of fans and is still very popular today.