The story of Test Drive 2001 takes place in various locations across the globe, including Germany, Sydney, and Washington. Players start with a Lotus Elise, but as they progress through the game, they can purchase other cars such as Mustangs and Jaguars to upgrade their vehicle.
The gameplay of Test Drive 2001 is focused on racing, with players competing against each other or against the clock in various tracks. The game features three modes: Single Race, where players must beat the clock and computer opponents; Tournament Mode, which allows players to earn money to buy new cars or upgrade existing ones; and Cop Chase, where players take control of a police car to pursue computer-controlled racers. Additionally, the game includes a two-player mode using the Link Cable for competitive racing.