Malcolm Wilson formed Malcolm Wilson Motorsport in 1979, primarily to support his own rallying career while offering preparation and contracting services to other competitors. In 1987 Wilson and his wife Elaine established a second company, M-Sport Limited, focused on manufacturing rally car parts and components. Following Ford's withdrawal from direct motorsport participation in the mid-1990s, M-Sport was awarded the contract to operate and promote the Ford World Rally Team from 1997, with Wilson as Team Principal. Malcolm Wilson Motorsport was absorbed into the new entity effective 1 January 1998.
Ford Motorsport selected M-Sport to run the 1997 WRC campaign with the Ford Escort WRC, a hastily adapted World Rally Car. Victories in Greece and Indonesia in the team's debut season demonstrated the potential of the partnership and earned a runners-up position in the manufacturers' championship.
In 1998, Ford commissioned M-Sport to design and build the all-new Ford Focus WRC. The car made its debut in 1999 with Colin McRae as lead driver, immediately recording competitive stage times at Monte Carlo before both entries were excluded due to an illegal water pump modification. By the Safari Rally in Kenya, the car took its first WRC victory, followed shortly after by a second win with McRae at the Rally of Portugal.
M-Sport expanded rapidly at its new Dovenby Hall premises, employing more than 170 people. In 2006, the Wilson-led Ford team secured the manufacturers' World Rally Championship title, Ford's first in 25 years of WRC competition. In total, the M-Sport Ford partnership accumulated seven FIA World Rally Championship titles, 61 victories, and 262 podiums across their collaboration. Mikko Hirvonen joined the team from 2008, and came within a single point of the drivers' title in 2009, losing to Sébastien Loeb in the final standings.
Alongside the works Ford entry, M-Sport also ran cars under the M-Sport Ford World Rally Team banner for drivers including Matthew Wilson and Henning Solberg. After Ford Motor Company's withdrawal from factory involvement, M-Sport continued operating independently under the Ford name as a customer-supported effort.
M-Sport supplied cars, servicing, and technical support to a wide range of customer teams, including the Stobart VK Ford Rally Team (2006–2009), Munchi's Ford World Rally Team (2007–2011), and Qatar World Rally Team (2013), among others.
In 2022, M-Sport released the Ford Puma Rally1, featuring a hybrid powertrain complying with the new Rally1 technical regulations. The system recovers energy under braking and deploys it via an electric motor in conjunction with the internal combustion engine.
M-Sport has manufactured rally cars across all five tiers of the Rally Pyramid. Its product line has included the Ford Escort WRC, Ford Focus RS WRC, Ford Fiesta RS WRC, Ford Fiesta WRC, and Ford Puma Rally1 at the top level, along with a comprehensive range of Fiesta-based Group R and Rally category cars from Rally5 through to Rally2.
Beyond rallying, M-Sport ran the official Bentley Motorsport outfit in the GT World Challenge Europe Endurance Cup between 2014 and 2019, and became technical partner to Jaguar for the I-Pace eTrophy electric racing car in 2018. The company launched the one-make Fiesta Sporting Trophy rally series in 2006. From the 2022 BTCC season, M-Sport has supplied the official TOCA engine option for the British Touring Car Championship. M-Sport also developed the Ford Focus RS RX rallycross car in partnership with Ford Performance and Hoonigan Racing Division for the 2016 FIA World Rallycross Championship.
From a single driver's personal rally preparation business, M-Sport grew into one of the WRC's most prolific manufacturers and team operators. The company's longevity in the sport — spanning multiple car generations, technical regulation changes, and shifts in Ford's direct involvement — reflects the durability of Malcolm Wilson's organisation. M-Sport remains the primary avenue through which Ford contests the World Rally Championship.