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The Lancer platform was redesigned in 1996, and along with it, the Evolution. The engine and transaxle were rotated 180° to better balance the weight and eliminate torque steer.
There were two versions available, the RS and GSR. The RS version was produced as a competition car with a limited-slip front differential and a friction type LSD at the rear. It also came with GLX seats and a choice of either 15-inch or 16-inch OZ lightweight racing wheels. The RS also had wind-up windows, optional air conditioning in some models, and a few extra brace bars to strengthen the chassis, one behind the front grille and another across the boot floor, and an aluminum rear strut tower brace.