The 2003 facelift, designated the CH series, introduced a heavily updated VR-X, which included new 16″ alloys, stiffer suspension, body styling kit, and gear shifter borrowed from the Lancer Evolution. In 2004, the new Lancer wagon was introduced as a direct replacement for its ageing predecessor.

In August 2005, all Lancers were upgraded to the 2.4 L 4G69 engine, producing 115 kW (154 hp) and 220 N·m (162 lb·ft) of torque. The upgraded engine also saw a change in trim levels and upgraded equipment—the ES and LS models now featured a more upmarket looking black interior, while the VR-X gained a new black grille to closer resemble the Lancer Evolution IX. The equipment levels of all models were also upgraded, with the LS and VR-X gaining climate control, and a premium audio system sourced from the luxury Mitsubishi Verada. The Exceed model was discontinued, and all updated models now used JDM sized rear bumpers instead of the larger USDM sized versions. Additionally, the wagon also saw these changes; and as of 2007, continues to be sold alongside the sedan.

The ES and LS models were given a minor facelift for the 2007 model year; this time gaining the same front grille as the US models, and putting it into line with the current corporate look—similar to that of the Colt and the locally built 380. Prior to the introduction of the all-new ninth generation Lancer, a limited edition ES model dubbed ‘Velocity’ went on sale. This package included VR-X grill, rear spoiler, leather/alcantara bolsted seats, sports pedals, 15″ OZ alloy wheels and chrome exhaust tip—all for the same price as the previous standard ES.

In Australia, the sixth sold from 1996-2004. It was designated as the CE series. Like the previous generation, it was available in a variety of body styles, which helped to cater for a more broad audience. The introduction of a sporty MR coupe helped to target this model directly towards a younger audience.

The station wagon continued on as a CE model, even though it was essentially carried over from the previous generation. This model had an unusually long model run, becoming increasingly uncompetitive as the years went by and often heavily discounted by dealers. Towards the end of its model run, Mitsubishi introduced some limited edition models (based on the GLi) to remain competitive with its rivals, these editions featured extras such as sports interiors, alloys and body kits off higher spec models. Generally, this generation sold well throughout its production run.

It should be noted that despite the introduction of the eighth generation Lancer Cedia in 2002, the CE series continued to be sold alongside it until mid-2004. The sedan was available in GLi trim, until it was finally discontinued in 2003. The coupe was facelifted and now only available in GLi and MR trims.

Due to its appearance, affordability, and the rise in status of the Lancer Evolution, this generation was quite popular with young car enthusiasts and the aftermarket modified Japanese car scene. Some popular modifications include exhaust systems, suspension, after market stereos and replica Evolution body kits.

Series I (96-98) and Series II (98-99)

* GLi – 2-door coupe and 4-door sedan. Powered by a 4 cylinder, 1.5 L engine (4G15 SOHC – 69 kW)
* GLXi – 2-door coupe and 4-door sedan. Powered by a 4 cylinder, 1.8 L engine (4G93 SOHC – 88 kW)
* MR – 2-door coupe. Powered by a 4 cylinder, 1.8L engine (4G93 SOHC – 86 kW)
* MR – 4-door sedan. Powered by a 4 cylinder, 1.8L MIVEC engine (4G93 SOHC – 141 kW)
* GSR – 4-door sedan. Powered by a turbocharged 1.8 L engine (4G93t DOHC – 141 kW)
* MXd – 4-door sedan. Powered by a turbodiesel 2.0 L engine (4D68T SOHC – 65 kW)

Series III (99-03)

* GLi – 2-door coupe (1.5 L or 1.8 L) and 4-door sedan (4 cylinder, 1.8 L)
* GLXi – 2-door coupe and 4-door sedan. Powered by a 4 cylinder, 1.8 L engine
* MR – 2-door coupe. Powered by a 4 cylinder (6 cylinder, 99-00), 1.8 L engine

Series IV (02-04) coupe update only

* GLi – Choice of 1.5 L engine (discontinued in 2003) or 1.8 L engine, 4 Cylinder
* MR – Powered by a 1.8 L engine, producing 86 kW (115 hp) & 163 N·m (120 lb·ft) of torque (1500-4500 rpm) out of a 4 cylinder