The 1921 Grand Prix season saw motor racing in Europe blossom again. The French Grand Prix was held for the first time since 1914, at La Sarthe, Le Mans. and the inaugural Italian Grand Prix was held in Montichiari, near Brescia. The 3-litre formula of the AIACR, already in use at Indianapolis, was adopted by those Grand Prix meaning manufacturers could design on a common formula.
Wealthy privateer Conte Giulio Masetti, gave FIAT's only win in the Targa Florio, heading home a big field including a strong challenge from Max Sailer’s Mercedes. This year was the swansong of European involvement in the Indianapolis 500. For the third year in a row, Ralph DePalma recorded the fastest time in practise (driving for Ballot), but it was former Duesenberg driver Tommy Milton who comfortably won for Louis Chevrolet’s Frontenac team, on his way to claiming the AAA championship for 1921.
An international field lined up for the French Grand Prix, with entries from France, Great Britain, Italy and a late entry from the American Duesenberg team. Those cars had innovative hydraulically operated four-wheel brakes giving them a decided advantage on the sharp corners of the Le Mans course. Lead driver Jimmy Murphy had a big accident during practice but, heavily bandaged up, he took the start. Never seriously challenged in the race, Murphy became the first driver to win both an American and European Grand Prix, with DePalma coming home second for Ballot.
A promising field for the first Italian Grand Prix evaporated leaving just six cars – a two-way battle between Ballot and FIAT. By driving more consistently and looking after their tyres, it was a French victory for the Ballots of Goux and Chassagne, with Wagner’s FIAT being the only other finisher.
During the year, Germany opened its first purpose-built racing track – the very fast AVUS circuit just outside of Berlin. At the end of the year, the AIACR signalled the close of the 3-litre formula. Ballot shut down its racing program to concentrate on touring-car production and it marked the start of the divergence of the European and American racing scenes.