The second-generation Crown that came out in October 1962 was radically modern, featuring the flat-deck styling (with the flat-top hood and trunk) that originated in American cars and was popular around the world. Its 4-lamp headlight design also followed a style that was popular in the U.S. The body dimensions were stretched to the limits of a small "5-number" car category. With this model change, the conventional ladder frame was replaced with a more rigid X-shaped frame. The rear suspension of the Deluxe grade sedan used coil springs rather than leaf springs.

The available body types included a 4-door sedan, a station wagon (Custom), and commercial-use vehicles including a van and pickup trucks (with single- and double-row seating). The commercial-use vehicles were marketed under the Toyopet Masterline brand. The engine lineup initially consisted only of a 1,897 cc 90 PS 4-cylinder OHV Type 4R unit that was used in the first-generation model, to which a newly developed 6-cylinder SOHC (Type M) was added in November 1965. The standard transmission was a 3-speed manual with overdrive, and a Toyoglide transmission without a clutch pedal was optional.

The Toyoglide transmission was replaced by a fully automatic transmission in September 1963. Two 6-cylinder Type M engines were made available, including a 105 PS unit for the Deluxe grade model and a 125 PS unit for the newly introduced S grade model. The S was a sporty model featuring a 4-speed manual transmission, a floor shifter, an upgraded suspension, and servo-assisted disc brakes. Instead of the standard front bench seat, the S model came with separate reclining front seats with seat belts, as well as round instrument meters including a tachometer.