The car's name reflected its two defining specifications: a 2,400 cc engine displacement and a maximum output of 240 horsepower, according to one account of Nissan's naming rationale. Production volume is estimated at approximately 200 units, slightly exceeding the 200 cars required for Group B homologation certification. The majority of 240RS cars were produced in left-hand drive configuration, though a small number of right-hand drive examples existed. One account suggests around 150 left-hand drive and 50 right-hand drive vehicles were built in total, with approximately 30 of these used in WRC rounds and domestic rally championships in various countries. Sales in Japan were minimal, mainly to people directly involved in the rally programme, and detailed production records were not preserved.
The homologation model and customer specification cars used the FJ24 engine, a 2,340 cc unit producing 240 PS. Fuel delivery on all versions, including the later evolution model, was by carburettor rather than fuel injection. The FJ24 differed fundamentally in design from the FJ20E engine sold in Japan for road cars, sharing almost no common parts despite some later confusion on the point. The works competition cars used an evolution model with a modified FJ24 producing 275 PS, with some accounts citing 280 PS. This evolution specification also brought reinforced brakes with 261 mm ventilated discs, a hydraulic handbrake in place of the mechanical unit, and an enlarged fuel tank capacity. For the 1985 Safari Rally, the displacement was increased slightly to 2,391 cc through a bore enlargement.
The year before the 240RS was introduced, a Group 4 specification car using the Silvia S110 body and fitted with the LZ20B engine producing 215 PS competed in the 1982 Safari Rally and finished third overall. A further development vehicle using the LZ24B engine with increased displacement and Group 4 specifications competed in several overseas rallies, and these were understood to be testbed vehicles for the incoming 240RS programme. Former racing driver Masahiro Hasemi, then a Nissan works driver, participated in the development programme.
The 240RS competed in the WRC from 1983 to 1986, achieving a best result of second place at a championship round. Because production volume was below 5,000 units, the car was ineligible to compete from 1987 onward when the WRC moved to Group A regulations requiring higher production numbers. Customer cars were produced to near-competition specification, making them immediately usable for private entrants without requiring significant preparation modifications. This combined with the car's mechanically straightforward and robust character made the 240RS a practical choice for privateer competitors, who continued to enter the car in national events and local championship after its WRC career ended. A restored works car was displayed at the 2006 Nismo Festival with a demonstration run, and this vehicle is stored in Nissan's Zama Memorial Garage. Japanese enthusiasts have also campaigned the 240RS in events such as the Targa Tasmania with competitive results.