The 1936 season was the third year of the 750 kg Formula. It was defined by intense engineering developments and the overwhelming dominance of the Auto Union team. The next iteration of the Mercedes-Benz did not prove successful and the team withdrew during the season to instead prepare for the next one. It therefore fell to the resurgent Auto Union team to dominate the racing. In particular, it was their young, new superstar, Bernd Rosemeyer, who mastered the tricky car and who showed superlative skill in wet conditions. Rosemeyer easily won this season's European Championship by winning three of the four Grands Prix.

Once again, it was the old master, Tazio Nuvolari, driving the new Alfa Romeo for the Scuderia Ferrari who proved the greatest challenger to the all-conquering German cars. Without competitive cars, and not wanting to suffer further humiliation from the German teams, the French racing authorities instead ran their major races to their own new sports car regulations. With tensions in Europe rising, politics was increasingly playing a major part in motor-racing. Benito Mussolini ordered Italian teams to boycott the early races in the season, and the Belgian Grand Prix was cancelled. Strikes forced the Le Mans 24 Hours to be postponed, then cancelled, and when Spain erupted into civil war later in the year, racing ceased there.

A pink background indicates the race was run for Sports Cars or Touring Cars, while a grey background indicates the race was not held this year. Sources:

Multiple classes are mentioned when they were divided and run to different race lengths. It only includes races over 50 km and/or half-hour in duration

This was the third year of the 750 kg Formula and, as such, no significant changes were made to the regulations. The European Championship was held again albeit only with four races in it. European political tensions were escalating and the effects were directly affecting the racing program across the continent. Countries were experiencing embargoes, shortages and riots; in March Hitler sent German troops into reoccupy the Rhineland and in July Spain erupted into full-blown civil war. Thus, both the Belgian and Spanish Grands Prix were cancelled.

At the end of 1935, the European racing unions had met to discuss options for a new formula. The current success of voiturette racing led to a proposal for the top class to be 1.5-litre cars. Another was 2.7-litre supercharged/4-litre unsupercharged formula. However, nothing final was decided. The French racing authority, the ACF, instead chose to opt out of the AIACR regulations. With Bugatti and the abortive SEFAC project unable to make any impression on the German dominance, they were fed up with humiliating defeats. They therefore chose to run the national Grand Prix, and their major races, to a sports car formula – for 2-seater cars with unsupercharged engines. Enthusiastically supported by the French automotive industry, new models were built by Bugatti, Delahaye, Talbot and Delage.

In October, another meeting of the AIACR finally decided on a new 4.5-litre/3-litre formula, to come into effect from 1938.

Mercedes-Benz had been the best cars in 1935 and for this season, they introduced a new 5.6-litre V12 engine. However, this bigger engine was heavier and with a 750 kg maximum weight, savings had to be found elsewhere. Along with a revised gearbox and suspension, the car was shortened by 25 cm. However, the car was found to be virtually undriveable, so the team had to urgently bore out the current 4-litre engine to 4.7-litres and dropped into the new chassis.