The eighth-generation Sprinter was launched in May 1995. Developed with particular consideration for the environment, safety, and total cost, the new Sprinter kept many of the predecessor's components and hardly changed its body dimensions, and yet managed to reduce the weight by up to 50 kg. The 6-light window design was revived to emphasize a youthful, sporty image. The available engines included a 165 PS 5-valve VVT (4A-G) unit, "high-mecha" twin-cam units with displacements of 1.6-liter (115 PS), 1.5-liter (100 PS), and 1.3-liter (88 PS), and a 2-liter diesel unit with devices to reduce NOx and black smoke emissions. The suspension employed a 4-wheel MacPherson strut system, and the layouts included front-engine, front-wheel-drive and 4-wheel-drive. The shock-absorbing body initially conformed to the Collision Impact Absorbing Structure (CIAS) standard, which was replaced with one that satisfied the Global Outstanding Assessment (GOA) standard in a minor model change in April 1997.

Production of the Sprinter was discontinued at the end of this model generation.