After the introduction of the Euro III Emission standards, the XL125V Varadero would either have needed to be withdrawn from production or modified. In 2007, Honda elected to continue with the model and so developed a new electronic fuel injection system based on the PGM-FI system used by other Honda motorcycles. At this time Honda also decided to bring about a major restyle to bring the model in line with company appearance trends at the time. The changes included a restyled front fairing which includes wind screen, indicators and headlight, an all new dashboard which now included a fuel reserve warning light and new fairing mounted wing mirrors, previously handlebar mounted.
