Walter Röhrl grew up in Regensburg, Bavaria, near Munich, as the youngest of three children of a stonemason. His parents separated when he was ten years old, and he subsequently lived with his mother. After completing school, Röhrl pursued a commercial education at Bishop's Ordinariate Regensburg. At the age of 16, he began working for the commercial director of a company representing several Bavarian Bishops, and also qualified as a ski instructor. He covered up to 120,000 kilometres annually as the commercial director’s chauffeur.
Röhrl was invited to participate in his first rally in 1968. He became a World Rally Championship favourite throughout the 1970s and 1980s, often partnering with Christian Geistdörfer as his co-driver. His first major championship win came in 1980, with a Fiat 131 Abarth, clinched at the San Remo rally.
In 1981, Röhrl signed a five-year deal with Mercedes-Benz, anticipating competition with a 500 SL roadster followed by a purpose-built Group B car. However, Mercedes-Benz withdrew before the season began, cancelling the Group B program. Röhrl received a DM 900,000 lump sum and was released from his contract, though this occurred too late to secure another drive for the season. Later that year, he and Geistdörfer briefly campaigned a Porsche 924 Carrera GTS in six rounds of the German rally championship. He also started the San Remo rally in a Porsche 911 SC, retiring with driveshaft trouble while in second place – a retirement he later described as particularly bitter, hoping a win would attract further Porsche commitment.
The 1982 World Rally Championship season saw Röhrl fend off four-wheel drive competition, led by Michèle Mouton of Audi, to win the title with the rear-drive Opel Ascona 400. He also won the African Rally Championship in 1982. Shortly after winning the championship, team manager Tony Fall fired him due to his reluctance to compete in the RAC rally and disagreements over publicity commitments for sponsor Rothmans. Röhrl, a non-smoker, refused to film promotional material for the tobacco company, stating he was hired as a driver, not an actor.
In 1983, Röhrl joined Lancia to drive the rear-wheel drive Lancia 037, before switching to the four-wheel drive Audi Quattro in 1984, a car built in his home state of Bavaria.
In 1987, Röhrl set a new record at the Pikes Peak International Hill Climb, becoming the first driver to complete the 12.42 miles (19.99 km) course in under 11 minutes, achieving a time of 10 minutes and 47.850 seconds in his 600 hp (440 kW) Audi Sport Quattro S1 E2, on a course largely covered with gravel.
Röhrl also found success in endurance racing. In 1981, he and Jürgen Barth won the GTP +3.0 class at the 24 Hours of Le Mans driving a Porsche 924 Carrera GTP, finishing seventh overall. He also competed in the World Sportscar Championship with Harald Grohs and Dieter Schornstein, winning the Silverstone 6 Hours race in a Porsche 935. In 1992, during the 24 Hours Nürburgring, Röhrl demonstrated his skill in challenging conditions, barely slowing down despite heavy fog and rain.
Röhrl has received numerous accolades throughout his career. In Italy, he was named “Rallye driver of the century”. In France, he was elected “Rallye driver of the millennium” in November 2000. A panel of 100 motorsports experts elected him “Best Rallye driver ever”. In 2011, he was inducted into the Rally Hall of Fame alongside Hannu Mikkola, and in July 2016, he was inducted into Germany's Sports Hall of Fame. Niki Lauda referred to Röhrl as “Genius on Wheels”. More recently, Röhrl has served as a senior test driver for Porsche road cars, evaluating performance at the Nürburgring Nordschleife, including work with the Porsche Carrera GT.