A dash mounted switch controlled the center differential, creating a locked power distributions on the front and rear axles.

Because of the MPV's optional 4WD, the Mazda Navajo version of the Ford Explorer (sold from 1990 to 1994) was only offered as a two-door, so as to minimize internal competition.

Sales weren't helped when the MPV received one star out of four in the Australian Australasian New Car Assessment Program (ANCAP) crash tests and a "Marginal" rating in the American Insurance Institute for Highway Safety (IIHS) crash tests for damage to the occupant compartment, tire intrusion into the driver footwell area, poor dummy kinematics, and possibility of injuries to both legs.

While the four-cylinder engine was retired for the American and Canadian markets, it was replaced with a similar but somewhat smaller 2.5 L unit for the rest of the world.

It now featured dual sliding rear doors equipped with roll-down windows and a third row seat that could fold and tumble into a floor recess much like the Honda Odyssey.

An optional GFX sport appearance package was made available for LX and ES models, which included fog lights and aero body add-ons.

In model year 2002, the MPV received Mazda's AJ 3.0 L V6 producing 200 hp (149 kW) and 200 lb⋅ft (270 N⋅m) of torque, a 5-speed automatic transmission, a new grille featuring a single chrome bar at the top, power sliding side doors (not available on the Australian market[3]), revised suspension settings, and 17-inch alloy wheels.

Interior changes included a new steering wheel, gauge surrounds, and a spring assist to ease folding the third row seat into the floor.

The LX Sport package added a customized look with alloy wheels, body side skirts, enhanced tail lights, anti-lock brakes, an air dam under the bumper, and an optional rear-mounted spoiler.

The ES model added leather seats, rear air conditioner, power sliding doors, and a choice of moonroof or roof-mounted DVD player.

The Mazda MPV earned an "Acceptable" rating in the IIHS offset frontal crash test in 2000 for fair structural performance and very high forces on the dummy's right foot.

In 2005, it earned a "Poor" rating in the side-impact crash test without the optional side airbags, indicating that high injuries to the driver and rear occupant are possible.

[6] It was powered by either a four-cylinder MZR Direct Injection Spark Ignition (DISI) 2.3-litre naturally aspirated engine or the turbo version of the same.

The launch of the third generation MPV was famously known for its television commercials narrated by a middle-aged woman saying the tagline, "Supōtsukā no hassō de, miniban wo kaeru."

The third generation MPV was available only in Japan, China, Hong Kong, Macau, Thailand, Indonesia, Singapore, Malaysia and New Zealand.