Daihatsu was keen to offer the Terios on the European market, but it had to improve it to comply with the Euro 3 emission standards that were introduced in 2000.
Just three years had passed since the introduction of the Terios in the European market, and the Japanese automaker had to refresh it. While other automakers used the facelift to improve the rest of their cars greatly, Daihatsu spent more money on the engine and less on the Terios' exterior. Yet, some changes have been made.
With the facelifted version, the Terios received a new, chromed grille at the front flanked by the same headlights as its predecessor. In addition, the front bumper was improved and had two round fog lights on its outer side and two round holes next to them on the inner side, flanking a lower grille. In addition, the bumper was continued on the sides by plastic panels that were extended toward the rear bumper. This lower protection was silver, regardless of the car's color.
The interior featured high-mounted seats, so four passengers could sit inside. At the front, the plastic dashboard sported an instrument cluster with a four-dials layout. In addition, the center stack was continued by a slimmer center console where the gear stick was hosted. The higher trim levels received power windows at the front, while the rear doors sported cranked ones.
But the most significant change was under the hood, where Daihatsu installed a DOHC engine with the same displacement as on the non-facelifted version. The new Euro 3 powerplant offered just a mere three hp more than its predecessor. All vehicles came with an all-wheel-drive system.