After establishing the championship in 1953, the FIA continued with the same manufacturers-only format: points on an 8-6-4-3-2-1 scale to the top six finishers, only the highest-placed car per manufacturer scoring per event, and only the best four results from six rounds counting toward the final tally. The formula rewarded consistency across a diverse calendar rather than excellence at any single event.
The 1954 season introduced a new round, the 1000 km Buenos Aires in Argentina, replacing the 24 Hours of Spa from the inaugural year's calendar. The 12 Hours of Sebring, 24 Hours of Le Mans, Mille Miglia, and RAC Tourist Trophy returned. However, the 1000 km Nürburgring — originally scheduled for 29 August — was cancelled when it became clear that Mercedes-Benz's 300 SLRs would not be ready in time, with organisers fearing poor attendance without the star German team. The Carrera Panamericana remained on the calendar, continuing the championship's transatlantic scope.
Ferrari deployed the 375 MM, 375 Plus, and 750 Monza, the latter a new 3.0-litre car that would prove increasingly important. Lancia fielded the D24, a potent machine that had won the 1953 Carrera Panamericana and continued to challenge Ferrari directly. Jaguar brought the C-type and the new D-type, the latter making its debut and immediately showing promise at Le Mans. Aston Martin persisted with the DB3S, and Porsche fielded the lightweight 550 Spyder in the smaller displacement classes. The American Cunningham team continued its entries with the Chrysler-powered C-4R.
Ferrari's four victories gave it an insurmountable lead in the championship standings. Lancia and OSCA shared the remaining two victories — both Italian marques — underscoring the dominance of Italian machinery across the 1954 season. The only exception to Italian superiority came in the form of Jaguar's strong showing at Le Mans, where the new D-type was competitive despite ultimately failing to win. Ferrari's consistency across the varied formats of the calendar — from the point-to-point road race format of the Mille Miglia and Carrera Panamericana to the endurance circuits of Sebring and Le Mans — made its championship margin convincing.
The RAC Tourist Trophy at Dundrod produced an unusual result: the outright victory on the road was taken by a larger-capacity car, but the tourist trophy itself was awarded on handicap to Paul Armagnac and Gerard Laureau in a DB Panhard. Championship points were however awarded on overall finishing order, not the handicap result.
Ferrari's back-to-back championships in 1953 and 1954 cemented the team's identity as the dominant force in sports car racing during the mid-1950s. The introduction of the Buenos Aires round pointed toward the globalisation of the calendar, a trend that would continue. Meanwhile, Jaguar's D-type development during 1954 set the stage for the British marque's Le Mans dominance in 1955 and 1956, and Mercedes-Benz's impending full entry with the 300 SLR would transform the competitive landscape from 1955 onward.