Initial D is a story about two mountain road racers, Nakazato and Takahashi, who challenge each other to find the best racers and defeat them in "battles".
Nakazato is surprisingly defeated by an old Toyota Trueno AE86 (Corolla in the US) one night, leading him to search for the person who defeated him, which leads him to the Speedstars, a local team.
However, the car that beat him was actually driven by a local Tofu shop owner's son, Takumi Fujiwara, who had unknowingly perfected the art of mountain racing through daily deliveries of tofu.
Takumi is able to defeat Nakazato again, showing that he is no fluke. But winning hasn't helped his home life, as his father, Bunta Fujiwara, is a drunkard and a racing genius.
His girlfriend Natsuki Mogi wants his attention despite having a dark and shameful secret, and his best friend Itsuki, who has no talent in driving, wants Takumi to teach him road racing after buying the WRONG car.
In a mountain road encounter, they run into Team Emperor's Mitsubishi Evo, and despite the old junker not standing a chance, when controlled by Takumi, they are able to defeat the Evo and attract the wrath of Sudou, Team Emperor's leader.
In another chance encounter, Sudou pushes the AE86 and Takumi to the limit, forcing the AE86 out with a busted engine. However, Takahashi is there to lend a hand.
With Bunta's help, they repair the AE86, this time with a true racing engine, and a three-way showdown between Takahashi, Fujiwara, and Sudou is on... Who will be the winner at the end?