Compared to the previous competition model, the Type 29, the Type 32 only shared the motorization with the previous model. Type 32 was small in size, with a wheelbase of 1,994m like the Bugatti Type 13, 5 models of Type 32 were produced. In addition to the prototype, four racing capable cars were made,

Each model came with the 2.0 L straight-8 engine based on that in the Type 30. It was a longitudinal engine with eight cylinders in line and five bearings with main bearings on the crankshaft. It had 3 valves per cylinder, two intake and one discharge, operated by a single camshaft Brakes hydraulically actuated at the front and mechanically actuated at the rear.

The Type 32 was the first Bugatti to be fitted with roller-bearing big ends in order to improve the bottom-end reliability.

The Type 32 also broke new ground (for a racing Bug) by using a three-speed and reverse transaxle unit, the exceptionally short wheelbase and long straight-8 engine making a conventional gearbox difficult to accommodate. It also heralded a hydraulic front brake actuation.

Despite the low center of gravity, its grip on the road was not good. The reason for this was due to its aerodynamics being similar to that of a wing profile, which meant that the vehicle could tend to rise at high speeds. Also, its short wheelbase contributed to the problem.

The following Type 32 cars participated at the Tours race:

• No. 6, with Ernest Friderich, who finished third at the finish

• No. 18, driven by the Prince of Cystria, retired on lap 12

• No. 11, driven by Pierre de Vizcaya, retired at the start after an accident

• No. 16, driven by Pierre Marco, retired on the third lap3

The French GP was Type 32's only GP race.