Nissan's path to the 240RS began with the S110 Silvia platform used as a testbed in the early 1980s. In 1982, a Group 4 specification Silvia fitted with an LZ20B engine producing 215 PS participated in the 30th Safari Rally and finished third overall. Nissan also developed an S110 variant with the larger LZ24B engine for several overseas rallies, with both machines serving as precursors to the 240RS. Masahiro Hasemi, a Nissan works driver and former racing driver, participated in the development of the car. The model name reflects its engineering: a 2,400cc engine displacement paired with a maximum output of 240 horsepower.
To satisfy FIA Group B certification requirements, Nissan produced approximately 200 units — slightly exceeding the minimum threshold. An estimated 150 were left-hand drive and 50 right-hand drive, with around 30 cars from the total allocated to WRC and domestic rally championships in various countries. Because the car was intended for overseas competition, it was not engineered to comply with Japanese exhaust emissions regulations. A small number of cars were sold in Japan, mainly to those directly involved in rallying, but detailed sales records no longer exist.
Unlike many Group B road cars that were softened for general road use, the customer-spec 240RS was delivered in a state ready for immediate competition entry. Combined with its mechanically simple and durable design, this made it especially popular with privateer teams.
The homologation car and road-spec models used the FJ24 engine, a 2,340cc unit producing 240 PS on a carburettor fuel system. Despite sharing a naming pattern with the FJ20E sold in the Japanese domestic market, the FJ24 is an entirely separate competition engine with almost no common components and is not a bore-up derivative of the FJ20E.
The works evolution model received a modified FJ24 producing between 275 and 280 PS. Additional upgrades included reinforced brakes using 261mm ventilated discs, a hydraulic handbrake replacing the mechanical unit, and a 7-litre increase in fuel tank capacity. For the 1985 Safari Rally specifically, the works cars received a bore increase that raised displacement to 2,391cc.
The 240RS competed in the WRC from 1983 through 1986, with a second-place finish representing the car's highest championship result. Although it could not match the outright power of the most extreme Group B machinery, its reliability and approachable character kept it competitive, particularly for privateer entries in both international and national series. The car has continued to appear in historic competition; a Japanese enthusiast has entered a 240RS in the Targa Tasmania Rally and achieved competitive results.
When the WRC transitioned to Group A regulations from 1987, the 240RS could not continue at the top level: its production run of approximately 200 units fell well short of the 5,000-unit minimum required for Group A homologation.
In 2006, Nissan volunteers restored a works 240RS for a demonstration run at the Nismo Festival. That vehicle is now stored at the Nissan Zama Memorial Garage.