On 23 August 1994, Renault announced they would be the engine supplier to the Benetton Formula team that included free engines and factory support. The B195 is similar to its predecessor, the B194 and the car was powered by the same factory Renault RS7 V10 engine used by Benetton's rivals, Williams, in their FW17. Being less stable than the FW17, the B195 was seen by most paddock insiders as inferior to its rival. The B195 was said to be very twitchy to drive and Michael Schumacher was quite critical of the car, saying it was only fast when driven on the edge.

Schumacher carried on from where he had left off in 1994, and battled Damon Hill for the world championship. The two drivers had several collisions and near misses. Schumacher capitalized on mistakes by Williams and Hill and took nine victories, easily retaining his championship, whilst Johnny Herbert took victory at Silverstone and Monza, another race where Hill and Schumacher had a crash.