MITSUBISHI MOTORS developed the 1996 model PAJERO/MONTERO Prototypes with a shortened wheelbase and a weight reduction of 50 kg. Their aim was to achieve both high-speed stability and a high level of turning capability, using data gathered through the experience gained during the previous event. While there were improvements to the engine responsiveness, it was required to be fitted with a 34 mm restrictor which reduced the maximum output to 300PS. After the end of the previous event, the organizers disallowed the various manufacturer works teams and their prototypes by deciding to prohibit gasoline turbocharged engines from 1997. As a result, the history of the PAJERO/MONTERO Prototypes, which had continued since 1985, finally came to a close with the 1996 model. That year, the MITSUBISHI MOTORS team opted for a lineup with Shinozuka, Saby and Fontenay driving the PAJERO/MONTERO Prototypes, and Masuoka participating with the RVR Prototype, that shared its platform with the PAJERO/MONTERO.

The 18th event started in Granada, Spain as was the case the previous year, with a rest day in Zouérat, Mauritania. In the latter half of the rally, the event passed through Mali, which had not been included in the itinerary for four years due to political unrest, after which it reached Guinea then headed north to Dakar, Senegal. This year’s competition covered a total distance of 7,579 km, with 6,179 km of competitive stages (SS). The number of participating vehicles, which had been increasing again since the 1993 event, totaled 295, of which about 40% made it to finish.

In the final showdown for the prototypes, the Citroën team, who had announced its withdrawal from the discipline after that year's Dakar, resolutely aimed for a victorious end to its fight against the PAJERO/MONTERO Prototypes in order to leave a lasting impression in the event.

Once the high-speed stages began, incidents occurred one after another. Shinozuka, who had set the fastest time in the prologue special stage at a soccer stadium in Granada, got stuck in a rut and damaged his suspension while driving at high speed on an African special stage. After waiting a long time for his support team to repair the damage, he was unable to regain his pace, loosing considerable time as a result.

Subsequently, Saby was forced to retire after overturning his car, rolling four times. The RVR driven by Masuoka ranked third after the end of the first half of the event, maintaining his position as the race entered its second half. However, he went off the track when trying to avoid a local truck that appeared in his way on a special stage, damaging the front end of his vehicle. With only four days left before the finish, the mishap set him back to fifth.

To add to his despair, he hit a stump hidden in the grass and damaged the suspension in the next to last special stage, slipping back to sixth overall.

Teammate Fontenay kept up a constant pace with no major problems, ranking third overall. Masuoka finished sixth overall, Saby landed in seventh, and Shinozuka was 17th. Despite their efforts, they were unable to resist the onslaught from the Citroën team. On the other hand, Jean Pierre Strugo of France, Migel Prieto of Spain and Carlos Sousa of Portugal, dominated the non-modified production car category with a 1-2-3 class result and tenth to 12th places in the overall standings. In addition, French driver Tambay ranked 13th overall and second in the modified production car class.