BMW M has now long become a brand in its own right, positioned at the sharp end of BMW model series. Indeed, in 1992, it even worked its magic on now hugely desirable Touring versions of the 5 Series. The same year saw the arrival of the new M3, now available as both a coupé and four-door sedan and with understated styling. Customers could also have their very own dream BMW made to measure by BMW Individual. These were the last days of BMW Motorsport GmbH as the company name, standing aside for the more succinct BMW M GmbH on 1 August 1993.

The Sequenzielle M Getriebe (SMG) introduced in 1996 saw M GmbH combine clutchless gear changes with the existing manual gearbox, and soon almost half of all M3s were being delivered with this user-friendly but also very sporty transmission. At the same time, a blistering new 12-cylinder engine was powering a McLaren to overall victory in the Le Mans 24 Hours.