Continuing on from the 944, the Porsche 968 was introduced in 1992 and was only sold until 1995. Whilst looking very similar to the 944, the 968, designed by Harm Lagaay, only shared approximately 20% of its parts with the 944. Now featuring a 3.0 litre four cylinder water cooled engine with 177 Kilowatts as standard, performance was further increased over the 944.

Given the small production period of the 968 only 12,776 were produced world-wide, making them relatively rare in Australia. The Cabriolet was available from introduction, as was the option of a four speed Tiptronic transmission over the standard fit six speed manual. Sixteen inch Cup style alloy wheels were standard fitment.

The 968 Clubsport was introduced in 1993. The Clubsport weighed 1,320 kgs, 100 kgs less than the standard 968. This was achieved by removing the rear seats and replacing the front seats with Recaro sports seats, removal of electric windows, lighter 17 inch alloy wheels and a different wiring system. The lighter weight, along with an almost perfect 50/50 weight distribution, resulting in excellent handling revered by enthusiasts.