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 :
The sequel to Micro Machines, the game is themed around Galoob’s Micro Machines toys, and players race around environments in miniature toy vehicles. Micro Machines 2: Turbo Tournament adds new vehicles and game modes, and the Mega Drive version was released on J-Cart, enabling up to eight players without a multitap.