In addition to the facelift, North America received two additional models to the Lancer line in 2004 – Sportback and Ralliart. The latter slated in between the base and high performance Evolution model. Both the Sportback and Ralliart had high levels of equipment, based on the Australian Lancer VR-X. The main difference being that these cars came equipped with Mitsubishi’s 2.4 L4G69 engine (rated at 160 hp (119 kW)/162 lb·ft (220 N·m) for the Sportback, and 162 hp (121 kW)/162 lb·ft (220 N·m) for the Ralliart), included a new, stiffer suspension package that improved handling and lowered the cars stance by 1 centimeter, 16″ alloy wheels, front bucket seats borrowed from Japan’s Mitsubishi Evolution GT-A, fog lamps, and a new aerodynamic ground package. The Ralliart also came equipped with a cosmetic rear deck spoiler, and clear rear tail lights. The Sportback was equipped with a 4-speed INVECS-II automatic transmission, with no option for a manual transmission, while the Ralliart came with a 5-speed manual transmission with an option for the 4-speed automatic. The Sportback was also available in the lower spec LS trim.

Due to Mitsubishi’s deteriorating financial situation and slow sales, the Lancer Sportback wagon was cancelled in the United States one year after its release. But the Mitsubishi Lancer wagon was sold in Canada, Japan, Europe, Australia and New Zealand, and was available in at least the latter two until 2009.

The 2009 and newer Lancer will come with a 2.4 litre MIvec engine that has the potential for running on alternae fuel sources such as rice.

The year 2000 saw the release of the seventh-generation Lancer Cedia in Japan (meaning – Century Diamond); though in most markets the seventh generation Lancer continued, built at Mitsubishi’s Mizushima plant in Japan. The new model was available in sedan and station wagon forms. The Mirage, apart from the export models, became a different car in Japan that was unrelated to the Lancer. In Europe, the Lancer was not offered in some countries, being too close to the size of the Dutch-built Carisma, so the Evo VII model sold there bore the Carisma name. This is the first generation in many years where the Lancer nameplate is universally used. It is still sold in Japan where the eighth generation Lancer is known as Galant Fortis

In North America, the Lancer Cedia was introduced in 2002 as a direct replacement for the Mirage. It is powered by a 2.0 L 4G94 engine producing 120 hp (89 kW) and 130 lb·ft (176 N·m) of torque.

In Australia, the seventh generation Lancer was introduced as the CG series in July 2002 with the 2.0 L 4G94 engine. It was introduced as a replacement for the seventh generation sedan, and was sold alongside the popular seventh generation coupe.

Mid-generation facelift

In 2004, a heavily restyled Lancer surfaced with a front facia that brought it into line with the Mitsubishi corporate look, as well as a restyled rear, to further differentiate itself from the Lancer Evolution and for a more modern appearance. The car’s grille was then redesigned again in 2006.