The year 2000 saw the release of the seventh-generation Lancer Cedia in Japan (meaning - Century Diamond); though in most markets the seventh generation Lancer continued, built at Mitsubishi's Mizushima plant in Japan. The new model was available in sedan and station wagon forms. The Mirage, apart from the export models, became a different car in Japan that was unrelated to the Lancer. In Europe, the Lancer was not offered in some countries, being too close to the size of the Dutch-built Carisma, so the Evo VII model sold there bore the Carisma name. This is the first generation in many years where the Lancer nameplate is universally used.

In North America, the Lancer Cedia was introduced in 2002 as a direct replacement for the Mirage. It is powered by a 2.0 L 4G94 engine producing 120 hp (89 kW) and 130 ft·lbf (176 N·m) of torque.

In Australia, the seventh generation Lancer was introduced as the CG series in July 2002 with the 2.0 L 4G94 engine. It was introduced as a replacement for the seventh generation sedan, and was sold alongside the popular seventh generation coupe.