The BMW M1 (model code E26) is a mid-engined sports car produced by German automotive manufacturer BMW from 1978 until 1981.

In the late 1970s, Italian automobile manufacturer Lamborghini entered into an agreement with BMW to build a production racing car in sufficient quantity for homologation, but conflicts arose that prompted BMW to produce the car themselves.[2][3] The resulting car was sold to the public, from 1978 until 1981, as the BMW M1.

It is the first mid-engine BMW automobile to be mass-produced; the second is the i8plug-in hybrid sports car.    

The motorsport division of BMW, headed by Jochen Neerpasch, had been wanting to compete in motorsports using a car developed for competition racing, in order to compete with arch rival Porsche in Group-5 racing. Thus, the development of the M1 was initiated. Neerpasch, who was head of the development program, stressed that the car was to be strictly mid-engine in order to outclass its competitors. As BMW wasn't able to build 400 road-going examples of the car in the required time period as stipulated by the rules, the company partnered with Lamborghini to work out the details of the car's chassis, assemble prototypes and manufacture the vehicles. The tubular steel space frame chassis was the work of Gianpaolo Dallara, but soon Lamborghini's financial position deteriorated and the possibility of the car's production by the Italian manufacturer faded, so BMW reassumed control over the project in April 1978, after seven prototypes were built. The delay in production and the changes in Group 5 rules forced the company to compete in Group 4 racing with the car.