In 1904, the company started to produce kits, consisting of an engine and associated components, to allow others, particularly bicycle makers, to enter into motor vehicle production.
Fafnir had its own racing team running up to seven cars with drivers including Rudolf Caracciola.
A replica of one of the racing cars has been built in the United Kingdom and competed in number of VSCC events fitted with a WW1 Hall-Scott aero engine.
[4] Fafnir production methods were very labour-intensive, and with the difficult trading conditions of the 1920s failed to compete with the large manufacturers.
Prices were reduced, but losses mounted and with debts of 1.8 million RM the banks forced the company into bankruptcy in 1925 with a resulting closure in 1926.