In November 2002, a new Colt was released by Mitsubishi in Japan with a design by Olivier Boulay and built on the same platform as the Smart Forfour. In Japan, it was sold at a specific retail chain called Galant Shop. A European version made at Mitsubishi's NedCar facility followed into production a year later (see below). This generation is not sold in the United States.

In 2004, the Colt was launched in Europe and Australia, with models including a 1.1, 1.3, and a 1.5-litre, fuel injected petrol engines with MIVEC as well as a turbocharged version of the 1.5. A three-door arrived in 2005 for Europe only.

The Smart Forfour also shared the 2003 specification chassis, with Brabus releasing a performance version of the Forfour in 2004 using the same engine as used in the 2004 European cz-T, but squeezing 30 PS (22 kW) extra out of the same 4G15.

In November 2004, a 1.5 L D-ID direct injection turbo-diesel version with turbocharger and intercooler, producing 95 PS (70 kW; 94 hp) was made available, with an option of the Allshift automated manual gearbox with electrohydraulic clutch and six gears.

The performance specification 1.5 T was based on the...