The game offers 140 track layouts at 60 different locations and 189 cars. Slightly Mad Studios advertised that "each track is a living, organic venue" that "changes lap by lap" as a race progresses, enabled by the LiveTrack 3.0 system, which simulates variables including track temperature and dynamic weather. Off-road driving was added to the series, including rallycross tracks and cars. New manufacturers in the game included Porsche, Ferrari, Lamborghini, Jaguar, Honda, Acura, and Nissan. The game supports virtual reality, up to 12K resolution, and triple-screen configurations.
Funding for Project CARS 2 opened on 23 June 2015 through World of Mass Development and Slightly Mad Studios' official forum, where donors could gain access to development builds and provide feedback. The game was officially announced on 8 February 2017, initially described as consisting of 182 cars from 38 manufacturers with new additions including the Honda Civic, Jaguar XJ220, Toyota GT-86, and Nissan R89C, along with 46 tracks containing 121 layouts, a majority laser-scanned, with new circuits including Fuji Speedway, Knockhill, Long Beach, and the Dirtfish rallycross track.
The game uses the proprietary Madness Engine with a custom physics engine called LiveTrack 3.0. Tire physics were built from the ground up using the proprietary Seta Tire Model (STM), simulating full dynamic tire movements and actions at up to 200 Hz. Slightly Mad Studios worked closely with auto manufacturers, auto industry companies, and race car drivers to ensure accurate simulation. The studio developed a partnership with IndyCar, incorporating the full 2016 season lineup, the official logo, and the Indianapolis 500. Online play was developed with an esports focus, including an online ranking system, online championships, and improved matchmaking.
On 21 September 2022, the game was delisted from digital storefronts due to expiring car and track licences; the game remains playable for those who purchased it prior to delisting.
Project CARS 2 received "generally favorable" reviews according to Metacritic. Luke Reilly of IGN awarded it 9.2/10, stating it was "about as good as real racing gets right now." PC Gamer awarded 89/100, describing it as "Serious racing for serious racers. Extraordinarily convincing at each of the disciplines on offer." Richard Wakeling of GameSpot gave 7/10, acknowledging its "ambitious scope and depth" and "sheer breadth of available motorsports" while noting recurring bugs. Matthew Kato of Game Informer scored it 7.75/10, praising the breadth of content but noting it required exploration to appreciate. Josh Harmon of Electronic Gaming Monthly gave 6/10, concluding it was "hard to look past the mountain of gaffes that quickly pile up on and off the track." Driving.co.uk called it "one of the best racing games available" with "realistic handling" and "a mouth-watering array of cars and tracks." Edge stated that "no racer offers such a breadth of choice, or seems so willing to let the player set the rules of the road." The game was nominated for "Best Racing Game" and "Best VR Experience" in IGN's Best of 2017 Awards.
Project CARS 2 reached number 2 in the UK sales charts on launch, behind Destiny 2, and reached number 3 in both Australia and New Zealand. In Japan it was the 6th best-selling PlayStation 4 game and 11th overall. The game sold 265,000 copies on PC in the first nine months following release.
In December 2018, Slightly Mad Studios CEO Ian Bell confirmed the development of a new instalment in the Project CARS series. It was released on 28 August 2020.
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