The Dodge Challenger entered its second year of production in 1971, continuing to wear the low 'Coke Body' profile with full-width scoop-like grille, dual round headlights, and raised rear fenders introduced in 1970. Minor styling updates were made to the grille and taillight treatment, but the 225 cubic-inch Slant Six (the coupes were equipped with the 198 CID Slant Six) remained the standard engine.

Dodge had been the final company to release a completely new model for the muscle car market, more than five years after the first Mustang was released, yet the E-Body Challenger R/T made a formidable name for itself. The Challenger was one of two E-Body Chrysler cars, the other being the slightly smaller Plymouth Barracuda. Just like the Barracuda, the Challenger was offered in a plethora of trim and option levels and with nearly every engine within the Chrysler arsenal. Using a similar formula to the Ford and Chevrolet, the Challenger was based on a stretched, compact Dart platform (the Dart wheelbase was 110-inches and the Challenger was an inch longer). Body styles included a coupe, hardtop, and convertible with prices of $2725, $2,850, and $3,100 respectively in 1971. The R/T was offered solely as a hardtop, priced at $3,275. 1971 was the final year that Dodge built a factory convertible, until the mid-1980s. It was also the final year for the Hemi engine, and approximately 71 or 72 Challengers were equipped with the engine in 1971 (59 were four-speed cars and 12 had the TorqueFlite).

Dodge's winged Daytona was effectively banned by NASCAR in 1969, and as a result, Dodge withdrew much of their factory backing of stock car racing. They earned twenty-two Grand National victories in 1969, seventeen in 1970, and eight the following year. 1971 was the final year for the 'Hemi' V8 in street trim or racing form, mostly due to astronomical insurance premiums on high-performance cars and Federal regulations for 1972 requiring all cars to run on regular gasoline. Rather than sacrifice performance, Chrysler decided to retire it as a winner.

The Hemi 'Cudas came from the factory with a Shaker hood, but the Hemi Challenger did not include a shaker hood as standard but was part of the options list. It is estimated that fewer than a dozen cars were fitted with a Shaker hood.

R/T models included high-back bucket seats, heavy-duty drum brakes, an R/T handling package and Rallye suspension, Rallye instrument cluster with simulated woodgrain trim, and G70x14 raised white letter tires. They were equipped with the 383 CID four-barrel V8 engine, variable speed wipers, and bodyside tape stripe. The Hemi option added a staggering $892 to the bottom line, partly responsible for the low production numbers.

Thirty-one examples of the Challenger R/T received the factory-authorized sunroof conversion, with the work performed by a professional contracting service prior to final shipment to the originating dealer.

The standard equipment installed in the 1971 Challenger included dome and parking brake/brake system warning lights, front foam seat cushion, three-spoke steering wheel with simulated woodgrain and padded hub, glovebox with rotary latch (the convertibles had a locking feature), ventless side windows, cigarette lighter in all body styles except the coupe, and front and rear side armrests and ashtrays. There were color-keyed carpeting, bucket seats, outside left manual mirror, an electric windshield washer, and concealed two-speed wipers.

the 198 cubic-inch Slant-6 had overhead valves, solid valve lifters, a one-barrel carburetor, four-main bearings, and delivered 125 horsepower at 4,000 RPM. The 225 Slant Six had similar components including the one-barrel carburetor but delivered 145 horsepower at 4,000 RPM. Eight-cylinder engine options included the 318 CID V8 with a Carter 'Thermo-Quad' four-barrel carburetor and delivering 275 horsepower at 5,600 RPM. The 360 CID V8 used a two-barrel carburetor and delivered 255 horsepower at 4,400 RPM. The 383 CID delivered 275 hp with the two-barrel setup and 300 with the four-barrel carburetor. The 440 Magnum V8 produced 370 hp, the 440 'Six-Pack' with three Holley two-barrel carburetors delivered 385 horsepower, and the range-topping 428 'Street Hemi' with hemispherical combustion chambers, two Carter AFB four-barrel carburetors, and 10.25:1 compression, produced 425 horsepower at 5,600 RPM.

A three-speed manual transmission was standard on all Challengers, with the TorqueFlite automatic or four-speed manual transmissions optional. The standard Challengers rode on 7.35 x 14 tubeless black sidewall tires while the R/T models received F70-14 belted black sidewalls with raised white letters.

The combined coupe and hardtop Challenger body style production were 23,008 units, plus an additional 2,165 convertibles. With the 4,630 Challenger R/T models, Dodge built a total of 29,803 Challengers in 1971. Approximately 27,900 of those were equipped with eight-cylinder engines, with approximately 75 percent of the eight-cylinder engines being the standard 318 CID unit.

Increasing pressure from insurance companies and new federal safety regulations resulted in a drastic reduction in the options list for 1972. All of the big-block engines were absent from the 1972 Challenger option list, and the R/T series was replaced by the Challenger Rallye series. Available engine options included the 225 slant-6, 318 CID V8, and the 340 CID V8 with a four-barrel carburetor. All three engines received lower compression ratios in order to run on lead-free gasoline, and horsepower ratings were now the more accurate Society of Automotive Engineers (SAE) net horsepower calculations.

Mandatory 5 mph bumpers were added in 1973 and the 225 CID six-cylinder engine was dropped. The 340 CID V8 was replaced in 1974 by a 360 CID with 245 horsepower.

The inaugural year of production was the most popular for the Challenger, with 76,935 examples sold. 26,299 were produced in 1971, followed by 22,919 in 1972, and 27,930 in 1973. For 1974, just 11,354 examples were built. The Challenger name was discontinued following the 1974 model year, and revived in 1978 as a rebadged variant of the early Mitsubishi Galant Lambda coupe. Again, production was brief, lasting from 1978 through 1983. The third generation of the Challenger began in 2008, following a concept car shown at the 2006 North American International Auto Show. The production version incorporated many of the design cues of the original 1970 Challenger R/T.