The controversy began in Spain, where Hunt was initially disqualified from first place, handing the victory to Lauda, only for the decision to be overturned on appeal months later. In protest, Ferrari declined to enter the Austrian Grand Prix. Hunt won in France and, it seemed, in Britain, but the race had been restarted after a first lap pile-up and Hunt drove on an access road returning to the pits, which was against the rules. He was eventually disqualified after an appeal from Ferrari, and Lauda became the official race winner.
Lauda had a massive crash at the Nürburgring in West Germany and appeared likely to die from his injuries, but managed to return after missing just two races. Going into the final race in Japan, Lauda led Hunt by three points. In the appalling weather conditions, Lauda withdrew from the race and Hunt finished third to take the championship trophy. Other noteworthy events include the introduction of the six-wheeled Tyrrell P34, the last race by Chris Amon, and the British Grand Prix, which was the only championship race ever in which more than one female driver were entered (although both failed to qualify).
Despite the success of Gordon Murray's Cosworth-powered cars, Bernie Ecclestone signed a deal with Alfa Romeo to use their flat-12 engine. The engines rendered the new BT45s unreliable and overweight. 1974 champion Emerson Fittipaldi moved to his brother Wilson's team, Fittipaldi Automotive, and his seat at McLaren was given to James Hunt. The Shadow team received a British licence, becoming the first team to officially change its nationality. Ligier arrived at the start of the season after Guy Ligier bought Matra's assets, hiring Jacques Laffite.
Jacky Ickx moved to the newly formed Wolf-Williams Racing, while Mario Andretti acquired a permanent contract with Lotus after the Parnelli team folded. John Watson moved to Penske Racing for the full season. BRM continued to decline, only entering the first race. Embassy Hill pulled out following the plane crash in November 1975 which killed all six members on the plane, including driver Tony Brise and team owner Graham Hill.
After one race, Ronnie Peterson joined March in favor of Lella Lombardi, while Gunnar Nilsson was loaned to Lotus. Following Niki Lauda's crash at the German Grand Prix, Carlos Reutemann was negotiated out of his Brabham contract to act as a replacement. Reutemann's seat at Brabham was taken by Rolf Stommelen and later Larry Perkins. Chris Amon retired after seeing Lauda's crash, but was persuaded to return by Wolf-Williams. However, after a heavy collision during qualifying for the Canadian Grand Prix, he hung up his helmet for good. Jacky Ickx finished the season with Ensign, and Wolf-Williams hired Arturo Merzario.
The season featured several calendar shifts. The Argentine Grand Prix was cancelled due to economic and political concerns. The United States Grand Prix West hosted its first race on a street circuit in Long Beach. The Spanish Grand Prix moved permanently to Jarama following a fatal accident at Montjuïc in 1975. The Belgian and Monaco races swapped places, and Zolder took over the Belgian slot after the surface at Nivelles deteriorated. The British Grand Prix moved to Brands Hatch, and the Canadian Grand Prix returned after a one-year absence. The Japanese Grand Prix hosted its first event at Fuji Speedway.
Before the Spanish Grand Prix, a restriction was placed on air box height (850 mm) and car width (215 cm). This width restriction initially caught out the McLaren team, leading to James Hunt's disqualification before it was overturned on appeal.
Niki Lauda began his title defense with victories in Brazil and South Africa. At the United States Grand Prix West, Clay Regazzoni took a dominant victory for a Ferrari 1–2. In Spain, Hunt took his first win on track, though the result was subject to a months-long appeal regarding the width of his car. Lauda then won in Belgium and Monaco, the latter featuring both six-wheeled Tyrrells on the podium. Jody Scheckter took the first win for the Tyrrell P34 in Sweden.
Hunt won in France after both Ferraris suffered engine failures. The British Grand Prix ended in controversy when Hunt, Regazzoni, and Laffite used spare cars for a restart following a first-lap pile-up. Hunt won the race, but was later disqualified after appeals from Ferrari, Tyrrell, and Fittipaldi, handing the win to Lauda.
At the Nürburgring, Lauda suffered a high-speed crash and his car caught fire. He was pulled from the wreckage by Arturo Merzario, Guy Edwards, Harald Ertl, and Brett Lunger. While Lauda fought for his life, Hunt won the restarted race. With Lauda absent, John Watson won in Austria for Penske. Lauda made an astonishing return just six weeks later at the Italian Grand Prix, finishing fourth while Ronnie Peterson won for March.
Hunt won the Canadian and United States Grands Prix, closing the gap to Lauda to just three points heading into the finale. In Japan, torrential rain led Lauda to withdraw after two laps, citing dangerous conditions. Hunt suffered tire wear and a late puncture but fought back to finish third, securing the World Championship by a single point. Mario Andretti won the race, his first victory in five years.
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