The Volkswagen Beetle received a major facelift in 1965 with bigger windows all around. There were also improvements to the heater, which directed warm air into the passenger compartment directly. The heating system was applied to the 1965 Karmann Ghia as well. Two levers operated the system, and four thermostatically controlled flaps at the fan replaced a throttle wing.

Sun visors also swiveled on their mountings and the braking system was improved. Push buttons for the horn were replaced by a horn ring after less than a year and two speed wipers were introduced.

At the end of the model year in August 1965, the crankshaft from the 1500cc engine was fitted, increasing the engine’s capacity to 1285 cc (referred to as the 1300 motor) and increasing power to 40 bhp. Compression was raised from 7:1 to 7.3:1, a larger 30 PICT carburetor was installed, and top speed increased to 78 mph. Hub caps changed from domed to flat style and wheels were vented to aid cooling. Kingpins were replaced by maintenance free ball joints.

Karmann Ghia Coupe sales jumped to 28,387 – the highest total ever – and 5326 Convertibles found buyers. Prices for the 1965 Karmann Ghia were reduced to $2295 for the Coupe and $2495 for the Convertible.

Exterior paint colors changed significantly, while interior options offered a dizzying list of choices. New colors included Bermuda Blue, Sea Blue, Roulette Green, Henna Red, Cherry Red, Manila Yellow, Sea Sand, Arcona White, Smoke Grey, Fontana Grey and Black. Cloth now came in basket weave patterns and standard interior colors were keyed to exterior tones.

Other changes for the 1965 Volkswagen Karmann Ghia included the replacement of rubber mats with hard-wearing hair cord, new armrests and a vanity mirror in the passenger visor.