It has lots of different local multiplayer options, including an 8-player-on-4-controllers mode and hot-seat tournaments for up to 16 players. None of this is in split-screen so it plays well with odd numbers of players too.
From Wikipedia :
Micro Machines 2: Turbo Tournament features greater background interaction than the original, such as levels in the dark. Williamson’s favourite addition to the game was the sponge in the kitchen, which forced players to time their entry onto and exit from a platform. He also liked the toilet seat track.