Launched at the Frankfurt Motor Show in 1985, EX-E was an Austin Rover design study and marked a new direction for the MG marque, with the exterior by Gerry McGovern under the direction of director, Roy Axe.

Intended as a road car but having potential to be developed for competition, the mechanicals were derived from the MG Metro 6R4 rally car, including the 250 bhp V64V 3-litre V6 engine. The four wheel drive transmission was also borrowed from the 6R4.

The structure of the highly aerodynamic body is a bonded, high strength aluminium frame, with plastic exterior panels. The all-glass roof was a striking feature, showing aerospace influences, while the luxurious interior incorporated a highly sophisticated instrument and control system.