In 1976 the FIA, within the scope of motor racing competition, introduced a new Group 5 section reserved for "special" production cars. The new rules imposed a body width similar to that of normal series production, upon which however, it was possible to apply dimensionally larger mudguards in order to benefit from wider track widths and larger tires. BMW participated in Group 5 competitions with a dedicated version of its new flagship model, the E21 “320”. A new aerodynamic profile was created that integrated the large fenders and it was also fitted with a powerful 300 hp engine. The car was successfully used by the official BMW team and also as a developmental platform for young, emerging drivers.
