The next generation of Toranas appeared in October 1969 and were available with either a four or six cylinder engine. The inline six had a capacity of 138 in. The six-cylinder cars had a longer wheelbase of four-cylinder models, a more aggressively styled slightly longer nose to accommodate the larger engine, and offered a choice of three and four-speed manual gearbox or a three-speed Trimatic automatic transmission. The Torana was Wheels magazine's Car of the Year for 1969.
Body styles were all new and available in either two or four doors, and were offered in S or SL trim. Bench or bucket front seats were also an option, along with disc front brakes. A more-powerful 161 in³ engine was made available soon after the model's release in the more upmarket SL and in the two-door sports model, the GTR, as a 2600S with a two-barrel Stromberg WW carburettor. Later in production, the 161ci engine was replaced with a larger 173ci version (badged as the '2850') which also made it into the last of the LC GTR cars in two-barrel form.
In 1970 the first genuine performance Torana, the GTR XU-1, was developed by Holden along with Harry Firth of the Holden Dealer Team for competition in popular Series Production racing series in Australia as well as in off-road rallying. However, the main purpose of the Torana GTR XU-1 was to keep Holden competitive against the big and powerful Ford Falcon GT-HO V8s in the Hardie-Ferodo 500 (Bathurst) endurance race that is considered to be the jewel in the crown of Australian motorsport.