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In 2001, Honda introduced the next generation of the Civic Type R as a unique 3-door hatchback to the UK market, which was manufactured in Swindon, England. This European Domestic Market Civic Type R featured a 200 PS (147 kW; 197 hp) 2.0-liter i-VTEC engine (K20A2) and the regular Type R treatment of seam welding, close-ratio 6-speed transmission and upgraded brakes, but did not include some of the other higher-end features such as the helical limited-slip differential and red Recaro race seats that were standard on the EK9.

However, Honda marketed a JDM (Japanese domestic market) version of the EP3 (which was exclusively manufactured in Swindon, UK and was shipped to Japan), which retained the highly renowned helical LSD similar to that of the EK9 and red Recaro race seats. Other differences of the JDM model included a more track-oriented chassis/undercarriage settings as compared to the European model as well as a more powerful engine having a power output of 215 PS (158 kW; 212 hp) (designated K20A) had a fully-balanced crankshaft assembly with the different intake manifold, exhaust manifold, high-lift camshafts, high-compression pistons, chrome-moly flywheel and ECU programming. All of the Japan-spec K20A Type R powertrains were built in Japan and shipped to the Swindon plant to be installed in the Japan-spec Type R EP3. The JDM EP3 was also available in the traditional Type R Championship White while the European domestic market (EDM) version was not. The EDM has more relaxed gear ratios and some high-rpm torque traded for low-rpm torque compared to the JDM variant.

In 2003, the EP3 was updated with many improvements – revised EPS with quicker steering, revised suspension settings, projector headlamps (JDM came equipped with halogens only while the EDM came with an option for HIDs with self-leveling motors), lighter clutch and flywheel assembly, etc. Based on Honda literature, this facelifted (FL) model was targeted at addressing customers' and critics' feedback such as understeer on the limit (due to the front MacPherson strut setup), numb steering response and lack of low-end torque

Performance (all figures are manufacturer claims)

0–97 km/h (60 mph) in 5.8/6.5 seconds (JDM/EDM Pre-facelift), 5.8/6.4 seconds (JDM/EDM Facelift)
0–161 km/h (100 mph) in 15.1/16 secs (JDM/EDM Facelift)
Top speed 227 km/h (141 mph) and 235 km/h (146 mph) (JDM/EDM)

Note: JDM (Japanese Domestic Model), EDM (European Domestic Model)

A total of 25,798 units were built for Europe and Japan. Europe received 24,334 units and Japan received 1,464 units.

In 2003, Honda celebrated 30 years of the Civic badge by offering a special edition 30th Anniversary Civic Type R. This special edition featured red bucket seats from Recaro, air conditioning, privacy glass on the rear windows, a leather-wrapped MOMO steering wheel, red interior carpet and door cards. The 30th Anniversary models in the UK were available in Nighthawk Black, Satin Silver and Milano Red. Only 300 of these models were produced, 100 in each color.

For the last production year (2005), the EP3 Type R was offered in Vivid Blue Pearl for the European market. A total of 132 EP3s, which were all left-hand drive, were produced in Vivid Blue Pearl.

The 2005 Vivid Blue Pearl EP3 is often mistaken for a Premier Edition, which it is not. They were sold with the standard, facelifted Type R interior, although they had other variations, which were not to be found on the right-hand driven EP3s sold for the UK market.

All 132 Vivid Blue Pearl EP3s were delivered with xenon headlights, which includes integrated headlight washer jets in the front bumpers, as well as a height sensor in the right rear wheel arch, which will automatically adjust the height of the light beam as per required by EU regulations.

It is also fitted with rear privacy glass and outside air temperature sensor, as well as the EUDM center console with mechanical knobs placed over the radio unit, as opposed to the UKDM, USDM and JDM models with electronic knobs fitted on the side of the radio unit.