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In March 1990, at the Geneva Auto Show, the 190 E 2.5-16 Evolution II was shown. With the success of the first Evolution model, this model's 502-unit production was already sold before it was unveiled. This car retailed in 1990 for DM 136,720.

The Evo II included the AMG PowerPack fitted to the same short-stroke 2,463 cc (2.5 L) inline-four engine as the Evolution, producing a maximum power output of 232 hp (235 PS; 173 kW) at 7,200 rpm and 245 N⋅m (181 lb⋅ft) of torque at 5,000 rpm, as well as a full SLS adjustable suspension allowing the ride height to be adjusted from an interior switch. An obvious modification to the Evolution II was the radical body kit (designed by Prof. Richard Eppler from the University of Stuttgart) with a large adjustable rear wing, rear window spoiler, and Evolution II 17-inch alloy wheels. The kit served an aerodynamic purpose—it was wind tunnel tested to reduce drag to 0.29, while at the same time increasing downforce. Period anecdotes tell of BMW research and development chief, Wolfgang Reitzle, saying the laws of aerodynamics must be different between Munich and Stuttgart; if that rear wing works, we'll have to redesign our wind tunnel. The anecdote claims that BMW did redesign its wind tunnel afterwards.

500 examples were painted in blauschwarz blue/black metallic. But the last two, numbers 501 and 502 were painted in astral silver making them the rarest of the Evolution models.

The Evo II had the shortest production run of the 190 series models with production starting in 1990 and ending in 1991.