The BMW E36 M3 coupe debuted at the 1992 Paris Motor Show. The vehicle originally sported a 3.0 litre unit developing 286 bhp and propelling the car from 0-62 mph in 5.5 seconds and a top speed of 163 mph. However, in 1996 a new 3.2 litre engine was fitted to the car increasing output to 321 bhp. The top speed was electronically reduced to 155 mph, but the 0-62 mph dash shrunk to only 5.2 seconds.
For a limited period between 1996-96 the E36 M3 was also available as a right hand drive saloon. Approximately 400 examples of the M3 saloon were sold. In 1997 the SMG six speed gearbox was also added to the options list. Models sporting the SMG system are referred to as M3 'Evolution' or 'Evo' models. In 1998 a convertible M3 was added to the range.
The 1996 3.2 litre M3 has earnt the unwanted accolade of being unreliable. This is a result of the sometimes problematic double VANOS variable valve timing system in the cylinder heads. The VANOS system is known to rattle in its casing at low engine speeds, and in rare occasions seize up. The result is a reduction in performance.
In 1995 BMW began building a limited run of approximately 120 examples of the M3 CSL. The CSL was designed to be a race-ready version of the M3. The car was a stripped down and lightened, offering very little in the way of driver comforts. Recipients of newly delivered examples could find in the boota coil over suspension set and thicker anti-roll bars. However, fitting needed to be arranged by the owners and with the understanding that installation would void the BMW warranty.
In 1995 BMW released the limited-edition BMW M3 GT. The GT was a homologation special built with the intention of allowing the vehicle to participate in the FIA GT class II and IMSA GT series. Out of the 356 exmaples produced, 50 were right-hand drive versions for the UK.