The MG Car Company realised the potential of their small overhead camshaft engine when a team of three 847cc M-types won the Team Prize in the J.C.C. Double Twelve hour race at Brooklands in 1930. The Abingdon factory decided to take their racing very seriously from 1931 with the introduction of the purpose-built overhead camshaft 746cc racing C-type Midget, soon to become known as the Montlhry Midget. The Works competition cars saw mere modification of production cars give way to the manufacture of an all-new chassis in order to challenge the small capacity class in either blown or unblown form. Keen to increase general MG car sales, the company decided to attempt the Class 'H' 750cc world speed record at over 100mph with the intention of beating the rival small capacity Austin Seven Rubber Duck single seater to this goal. A prototype racing car was prepared for the 1931 season and George Eyston promptly took the Class 'H' record over 5kms at Montlhry in January 1931 at 103mph. Running at Spa and Le Mans, and faster than a K3 one year on the Mille Miglia until retiring, among the C-type's many successes were the Irish GP, Ulster TT, German GP and B.R.D.C. 500 mile race, establishing the model as MG's most successful racing car with 44 examples sold.
