The second generation of Discovery was marketed starting with 1999.
By this time, focus fell on the Discovery not as an utilitarian vehicle, but a larger, safer city car. That meant changing the interior to make it more comfortable and suitable for everyday use. The rear body received an extension in order to maximize boot space which later turned out to affect the cars stability off-road. A new engine was introduced, the in-line direct-injected 5 cylinder diesel which put out more power and had better fuel efficiency than its predecessor. The V8 was upgraded to 4.0 and received a new exhaust system which improved performance.