Nitrogen is used in racing cars for three main reasons.
1) Even a small variations in tyre pressure due to moisture would be crucial to wining the race.
2) These tyres are heated up tremendously during the race that tyres may tend to flame out. So nitrogen would retard any such flame outs.
3) Using Highly compressed nitrogen cylinders in the pit for operating various pnuematic tools is easier than having a compressor running.
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