The second generation Fit debuted on 17 October 2007 at the Tokyo Motor Show. At its introduction in 2007, it won the Car of the Year Japan Award for the second time. The vehicle offers a longer wheelbase than its predecessor and is wider and longer overall. Overall height is unchanged, while interior height increased by .3 in. Multi-mode seating and cargo configurations are retained, with redesigned headrests enabling more convenient folding of the rear seats. The cabin features greater interior volume, and boot capacity decreased from 21.3 to 20.6 cubic feet (0.58 m3). North America models are slightly longer, due to a longer fascia.
Two engines are offered in the new Fit. A 1.3 L (79 cu in) i-VTEC produces 98 hp (73 kW) at 6,000 rpm and 98 lbf·ft (133 N·m) at 4,500 rpm. This engine is offered in both European and Asian markets. A 1.5 L (92 cu in) i-VTEC engine is also offered and produces a maximum output of 117 hp (87 kW) at 6,600 rpm and 106 lbf·ft (144 N·m) at 4,800 rpm. This is the only engine available in the American market. A five-speed manual, five-speed automatic (4WD only) and CVT transmission are available.
The chassis was re-engineered, with structural rigidity increased by 164 percent over the first generation Fit.