The 1936 Grand Prix season was the third year of the 750 kg Formula. 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.

The Auto Union Grand Prix racing cars types A to D were developed and built by a specialist racing department of Auto Union's Horch works in Zwickau, Germany, between 1933 and 1939, after the company bought a design by Dr. Ferdinand Porsche in 1933. The Auto Union type B streamlined body was designed by Paul Jaray.