The second generation was introduced in 1997. This generation was split into the regular, more minivan-like RVR GDI and the RVR Sports Gear with sporting off-road pretensions. Thanks to various bumper and fender extensions, the Sports Gear was too large to classify as a compact car in Japan and was thus placed in a considerably higher tax grouping. This generation RVR was not sold in North America (except Mexico). In Europe, this car was restyled and sold as the Mitsubishi Space Runner.