In 1988 Capelli had a March chassis designed by Adrian Newey (later a winner of multiple Constructors' Championships as a designer at Williams, McLaren and Red Bull) combined with a Judd V8 engine (derived from the Brabham-Honda CART engine and the Judd/Honda F3000 unit). March had hoped to be the favoured development partner for this engine, but they found themselves sharing it with the French Ligier team as well as the defending F1 Constructors' Champions Williams who had lost their supply of turbocharged Honda engines to McLaren. Capelli was joined in the team by the British Formula 3 Champion, Brazilian rookie Maurício Gugelmin. They made a strong team and the March 881 was the surprise of the year. At Spa-Francorchamps he scored his first podium with a third place behind Ayrton Senna's and Alain Prost's McLarens (though this was not known until after the season when the Benettons were disqualified for fuel irregularities). Capelli's best finish was second place at the Portuguese Grand Prix where he finished behind Prost. Even better was ahead for the Italian when he became the first non-turbo driver since to lead a World Championship Grand Prix. This happened on lap 16 of the Japanese Grand Prix at Suzuka when Prost missed a gear coming out of the final chicane and Capelli was able to get ahead before the start/finish line and officially lead the lap. However, Prost used Honda's superior power and was ahead before turn 1. His Judd V8 suffered electrical failure just 3 laps later.