Porsche executives quickly recognised the demand for a more high-performance iteration of the 924 that could capitalize on the model's exceptional balance and bridge the gap between the standard 924 and the 911. Using their experience with turbochargers from various race cars and the 1975 911 turbo (930), Porsche opted to incorporate this technology into the 924, resulting in the introduction of the 924 turbo in 1978.

Upon its release, the 924 turbo received widespread acclaim from both automotive enthusiasts and journalists alike. Its supercar-like performance and impeccable handling were lauded, while its build quality, well-proportioned design, and purposeful aesthetics garnered universal praise. While some critics pointed out the turbocharged I4 engine's roughness, they were willing to overlook it considering the economy and remarkable power increase it offered over the naturally-aspirated version.

Porsche's decision to enhance the VW EA831 2.0ltr engine used in the standard 924 for the turbo variant involved significant revisions. The engine was hand-assembled at the Porsche factory in Zuffenhausen, with alterations including a revised crankcase, connecting rods, cylinder-head gasket, crankshaft, and a new aluminum-silicon alloy cylinder head. The compression ratio was lowered to 7.5:1 through the use of dished combustion chambers and specially shaped pistons to accommodate the KKK K-26 turbocharger without inducing pre-ignition.

To aid cooling and distinguish it from the standard 924, Porsche incorporated a NACA duct in the hood and installed four slotted air vents in the badge panel. Additional cooling features included open ducts on either side of the front valance to cool the front brakes. Standard features included 15-inch spoke-style alloy wheels, four-wheel disc brakes with five-stud hubs, and a five-speed racing pattern 'dog-leg' transmission.

Internally referred to as the "931", the 924 turbo showcased impressive performance figures, with its acceleration rivaling early iterations of the more powerful Porsche 928 and 911 SC. However, like many turbocharged cars of the era, the 924 turbo faced reliability issues, largely due to insufficient understanding of how to operate and maintain such an early oil-cooled turbo setup.

For the 1981 model year, Porsche introduced the revised 924 Turbo Series 2, featuring enhancements such as a larger compressor and a smaller turbine in the turbocharger, increased compression, and an improved fuel injection system with Digital Ignition Timing Control (DITC) ignition.

In North America, the 924 Turbo made its debut in late 1979 for the 1980 model year, albeit with additional weight due to federally mandated safety equipment and emissions controls that slightly reduced its power output. Subsequent model years saw incremental power increases and transmission changes specific to the North American market.

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