The BMW M3 E30 was developed by the BMW Motorsport GmbH , the BMW’s motorsport division. The body was equipped with blister fenders on the front and back to accommodate wider tread and larger tires. Moreover, the rear side widow was designed inclined to improve aerodynamics, and the trunk was made accordingly to a high deck. Other changes included a rear wing and a front spoiler to enhance aerodynamics. With displacement 2.3 liters, the engine was based on the six-cylinder engine of BMW’s super sports car M1, and was reduced by two cylinders to make it four-cylinder in-line fitted at the front. The BMW M3 E30 was homologated for Group A racing and with high tuning to produce 300 hp for maximum output. After that, the   Evolution model was also developed, and the performance was upgraded such as enlarging the displacement to 2.5 liters. In order to qualify the production of 5000 units per year required for Group A homologation regulations, the engine was manufactured by BMW Motorsport, and the BMW headquarters was in charge of the production of the vehicle.

In 1990 and 1991, Auto Tech Racing M3 team won the Division 2 class champion in Japan. One of the drivers, Roland Ratzenberger, run with Auto Tech Racing team in Macau Guia Race in 1991.  Although there was no chance to stand on the podium due to machine trouble, it was a step toward success in the world.