Subaru introduced the next generation of the WRX/STI August 2000 to Japan, with first models making their way across the globe from 2001. Unfortunately the 2-door STI from previous generation would be have an equivalent, with all models overall larger in size with the sedan increasing its width by 40 millimetres (1.6 in), and the wagon increasing by just a fractional 5 millimetres (0.2 in)
Turbocharged versions of the 2.0- and 2.5-liter engines were offered in the WRX and WRX STI models depending on region. The STI featured a more powerful 2.0-liter (2.5-liter outside of the Japanese market) EJ25, wtih WRX models featuring a 2.0-liter EJ20 turbocharged boxer engine until 2005, after which they switched to the 2.5-liter EJ25.
As with the previous generation, the infamous boxer burble and impressive handling and performance characteristics made this generation a hugely popular platform to modify with an abundance of parts available in the aftermarket space.