In April 1962, Ford replaced the Consul/Zephyr/ Zodiac range with a dramatically restyled MkIII model, although it shared some of its mechanical components, as well as the basic chassis design, with the Mark II. Rather than continue the Consul name, Ford UK decided to call the entry level car the Zephyr 4, renaming the six cylinder car the Zephyr 6, the Zodiac remained at the top of the range.

The Mark III shared some of its mechanical components, as well as the basic chassis design, with the Mark II, but had a stronger overall body construction. The exterior was designed by Canadian Roy Brown, who had also designed the Edsel and the Cortina, though the rear of the body was inspired by a design proposal by Frua. Unlike the Zephyr 4, the Zephyr 6 had a full-width grille including the headlight surrounds; overall body length and width were the same for both Zephyr III versions, the Zodiac was longer. With the same 2,553 cc displacement as the MkII Zephyr, the Mark III model had higher compression ratio, resulting in some 20 hp higher output, as well as a broader torque range.

The MkIII range was replaced in 1966 with the MkIV Zephyr, Zodiac and Executive saloons.