After three years on the market, Nissan facelifted the second generation of the Spanish-built Terrano.
Just like its predecessor, the Terrano II was available with two body styles, with three or five doors. The vehicle was developed together with Ford, and both models, the Terrano II and its sibling Ford Maverick, were built in Nissan's factory from Spain. Both carmakers updated their vehicles to comply with the Euro 2 norms, which were mandatory since January 1997.
From the outside, the main difference was at the front, where the car adopted four round headlights instead of the rectangular ones used on the previous model. Also, the grille got wider gaps to allow better cooling needed, especially in rough terrain. Depending on the trim level, the Terrano II featured plastic side moldings to protect the doors and panels from scratches and bush-markings.
Some visual changes were on the interior, where Nissan mounted a new dashboard and instrument cluster. Between the speedometer and tachometer, on top of the panel, the carmaker introduced an LCD for the odometer, while the fuel and temperature gauges were moved lower. An important addition was the airbag introduction for both front occupants. Nissan even tried to offer more comfort and luxury-inspired features such as the wood-trims on the center stack and door panels.
The car received a 125 hp 2.7-liter turbo-diesel engine on the technical side, which replaced the previously used 101 unit from the 1993 model. On the other hand, the 2.4-liter gasoline version lost six horses when compared to its predecessor.