BMW introduced the M535i in 1979 as the go-fast version of the 5 Series that it introduced in 1972, and the car was a factory sleeper thanks to its potent engine and its underpinnings.
In the late '70s, BMW made the M1 supercar, which was intended to race around the world. While that idea didn't end too well due to regulation changes, the automaker still developed a motorsports-oriented engine. As a result, in 1979, the automaker introduced the M535i. It was the first BMW M vehicle to be produced in a series. At that time, the department was still named BMW Motorsport. The production of this model began in April 1980 and lasted more than a year, until July 1981. In total, there were just 1,650 units produced. However, despite sharing most of its bodywork panel with the rest of the E12, it was a completely different kind of vehicle. At first sight, it was just a regular 5 Series with nicer wheels and some additional parts. But it was way more than that.
At the front, it still had the same four-headlight design as the rest of the range and a black grille that covered the rest of the front fascia. However, underneath it, there was a new bumper made from plastic and adorned by a black rubber stripe placed at the same level as the one mounted on the sides of the vehicle. Furthermore, the lower side of the bumper featured an extended apron that integrated the corner-mounted turn signals.
From its profile, the lower ground clearance and the multi-spoke alloy wheels were specific for the M535i. There were no side sills or aerodynamically profiled door mirrors. Furthermore, it even featured the same chromed flush door handles that BMW installed on the rest of the E12 5 Series. At the back, the sloped-down deck was adorned by a thick rubber spoiler. The red/dark-blue/light-blue stripes that decorated the vehicle's profile were available as an option. Finally, at the back, the automaker installed the twin exhaust pipes in the center, not on the sides.
While the exterior was quite an understatement, the interior was different. The automaker installed a set of Recaro high-bolstered front seats with a center console between them. Fronting the driver was a redesigned instrument panel featuring a tachometer marked with green paint up to 5,000 rpm and with the red line mark starting from 6,000 rpm. The speedometer was also marked up to 240 kph (150 mph). The center stack housed the dials for the ventilation system and a digital clock between them. In the back, the velour-covered bench seat featured a folding armrest and headrests for two passengers.
Under its hood, the M535i had a racing heart. The inline-six engine was derived from the one installed in the mighty M1 supercar. It sent 218 PS (215 hp) to the rear wheels via a five-speed sports gearbox and a limited-slip differential. BMW Motorsport installed a stiffer suspension and beefier brakes in all corners to match the car's performance. As a result, the car could rocket from 0 to 100 kph (0-62 mph) in 7.5 seconds on its way to a top speed of 222 kph (138 mph).