The 1997 Auto Trader RAC British Touring Car Championship was won by Alain Menu of the Williams Renault Dealer Racing team, driving a Renault Laguna. Menu dominated the year, setting a record of 12 wins during the season. The runner up was Frank Biela of Audi Sport UK in an Audi A4 Quattro. Third place was Menu's teammate, Jason Plato. In the independent class the championship was won by Robb Gravett in a Honda Accord.
Defending manufacturers champions Audi retained the same driver line up for 1997, with defending drivers champion Frank Biela again partnering John Bintcliffe. Pre-season was not without controversy for Audi as it had been announced that due to their dominance of much of 1996, a further weight penalty would be applied to both of their A4 Quattro's, a penalty that would subsequently be relaxed later in the season.
For BMW, 1996 proved to be their last year in the BTCC as a full manufacturer based outfit in the supertouring era, and their drivers Joachim Winkelhock and Roberto Ravaglia left the series to compete in the STW and the FIA GT Championship respectively.
Williams Renault, now into their third season running the Laguna, had a new driver in the form of future double BTCC champion Jason Plato, replacing 1991 Champion Will Hoy. Plato would drive alongside Swiss ace Alain Menu, three times a runner-up in the BTCC and now into his fifth year with Renault.
The TWR backed Volvo squad, after an ultimately disappointing 1996 despite 5 wins, introduced a new car for 1997, replacing the 850 model with the sleek new S40. Swede Rickard Rydell, who was 3rd in 1996, again drove alongside former Ford driver Kelvin Burt.