The beginnings of model racing
Small, nitromethane-powered engines originally entered the market in the 1940s. At the time with the ability for precise control in a similar manner as with a vehicle.

Early commercial products
Several early commercially viable remote control cars were available by mid-1960, produced by the Italian company El-Gi (Elettronica Giocattoli) from Reggio Emilia. Their first model, a 1:12 Ferrari 250LM was available in the UK in December 1966, through importers Motor Books and Accessories, St. Martins, London, and early in 1967 through Atkinson's model shop in Swansea. This model was followed by El-Gi's 1:10 Ferrari P4, first shown at the Milan Toy Fair in early 1968.

In the mid-late 60s a British company, Mardave, based in Leicester, began to produce commercially viable Remote Control Cars. Their first cars were nitro- or gas-powered cars sold in the local area in the early 70s.

In the early 70s several commercial products were created by small firms in the US. Most of these companies began as slot car companies and with the wane in popularity of that genre moved into the Remote Control field. Among these were Associated Electrics, Thorp, Dynamic, Taurus, Delta, and Scorpion. These early kits were 1/8 scale nitro-powered (then called gas) aluminum flat pan cars powered by a .21 or smaller engine. The bodies for these cars were made of polycarbonate (the most popular made of Lexan). The most popular engine was the K&B Veco McCoy. The primary sanctioning body for races for these cars was Remotely Operated Auto Racers (ROAR). In 1973-74, Jerobee, a company based in Washington State, created their 1/12 nitro car using a Cox .049 engine. Several aftermarket companies created parts for this car including clear Lexan bodies, heat sinks, and larger fuel tanks. This scale evolved into 1/12 scale electric racing when Associated Electrics created the RC12E in 1976-77. Jerobee became Jomac and created their own electric kit.

In 1976, the Japanese firm Tamiya, which was renowned for their intricately detailed plastic model kits, released a series of elegant and highly detailed, but mechanically simple electric on-road car models that were sold as "suitable for radio control". Although rather expensive to purchase, the kits and radio systems sold rapidly. Tamiya soon began to produce more purpose-built remote-controlled model cars, and were the first to release off-road buggies featuring real suspension systems. It was this progression toward the off-road class that brought about much of the hobby's popularity, as it meant radio-controlled cars were no longer restricted to bitumen and smooth surfaces, but could be driven virtually anywhere. The first true Tamiya off road vehicles were the Sand Scorcher and the Rough Rider, both released in 1979, and both based on realistic dune buggy designs. Tamiya continued to produce off road vehicles in increasing numbers, featuring working suspensions, more powerful motors, textured off-road rubber tires and various stylized "dune buggy" bodies. They also produced trucks, such as the Toyota HiLux Pickup, that featured realistic 3 speed gearboxes and leaf-spring suspension systems. All of these models were realistic, durable, easy to assemble, capable of being modified, and simple to repair. They were so popular that they could be credited with launching a boom in radio-controlled model cars in the early to mid 1980s, and provided the basis for today's radio-controlled car market. Popular Tamiya models included the Grasshopper and the Hornet dune buggies as well as the Blackfoot and Clodbuster monster truck models. The earliest Tamiya models, particularly the early off roaders, are now highly sought after by vintage remote control collectors and can fetch prices of up to US$3000 on internet auction sites if still in mint, unbuilt form. Acknowledging their continued popularity, several of the early kits have even been re-released by Tamiya during 2005–2007, with a few alterations.

A British firm, Schumacher Racing, was the first to develop an adjustable ball differential in 1980, which allowed nearly infinite tuning for various track conditions. At the time the majority of on-road cars had a solid axle, while off-road cars generally had a gear-type differential. Team Associated followed suit with the introduction of the RC10 off-road racing buggy in 1984.

Modern developments in radio controlled racing
Modified 1/8 scale buggy with upper body removedIn 1984, Associated Electrics, Inc. of Costa Mesa, California introduced the RC10 off-road electric racer; this model was a departure from Associated Electrics' regular line of nitromethane-powered on-road race cars. Designed as a high-grade radio controlled car, the chassis of the RC10 buggy was manufactured from anodised, aircraft-grade aluminium alloy. The shock absorbers were machined, oil-filled and completely tuneable; they were also produced from the same aluminium alloy. Suspension control arms were manufactured from high-impact nylon, as were the three-piece wheels.

Optional stainless steel miniature ball bearings were sometimes incorporated in RC10 wheels and transmissions. The RC10 transmission contained an innovative differential featuring hardened steel rings pressed against balls - which made it almost infinitely adjustable for any track condition. The RC10 quickly became the dominant model in electric off-road racing.

In 1986, Schumacher Racing Products released their Competition All Terrain vehicle, widely considered the best four wheel drive off-road "buggy" racer of the time. The Competition All Terrain went on to win the 1987 off-road world championship. This car is credited for sparking an interest in four-wheel-drive electric off-road racing.

Gil Losi Jr., whose family ran the "Ranch Pit Shop R/C" racetrack in Pomona, California, turned his college studies toward engineering, primarily in the field of injection molded plastics, leading to his foundation of Team Losi. When the JRX-2, the first Team Losi buggy, was released, it initiated a rivalry with Team Associated that continues to this day. Team Losi went on to secure a number of achievements, which included the industry's first all-natural rubber tires, the first American-made four-wheel-drive racing buggy, and an entirely new class of cars, the 1/18-scale Mini-T off-road electrics.

Although Losi and Associated seemed to dominate much of the American market, Traxxas, (another American company, famous for the T-MAXX and the REVO 3.3), and Kyosho (from Japan), were also making competitive two-wheel-drive off-road racing models. Although Losi and Associated were close rivals in the USA, Schumacher off-road models continued to be popular amongst European hobbyists.

Electric and nitro cars have come a long way in terms of power. Electric cars have gone from non-rebuildable brushed motors and ni-cad batteries to brushless motors and LiPo. Nitro cars have gone from small engines to huge .32 engines that are used in big monster trucks.