The Challenger was described in a book about 1960s American cars as Dodge's "answer to the Mustang and Camaro. It was one of two Chrysler E-body cars, the other being the slightly smaller Plymouth Barracuda. "Both the Challenger and Barracuda were available in a staggering number of trim and option levels" and were intended "to compete against cars like the Chevrolet Camaro and Ford Mustang, and to do it while offering virtually every engine in Chrysler's inventory." However, the Challenger was "a rather late response to the ponycar wave the Ford Mustang had started." In his book Hemi Muscle Cars,Robert Genat wrote that the Challenger was conceived in the late 1960s as Dodge's equivalent of the Plymouth Barracuda, and that the Barracuda was designed to compete against the Mustang. The Barracuda was actually the first car in this sporty car segment by a few months, but was quickly overshadowed by the release of the segment defining Mustang (the segment being referred to as "Pony Car"). He added that Chrysler intended the new Dodge as "the most potent ponycar ever," and positioned it "to compete against the Mercury Cougar and Pontiac Firebird." Genat also noted that the "Barracuda was intended to compete in the marketplace with the Mustang and Camaro/Firebird, while the Dodge was to be positioned against the Cougar" and other more luxury-type musclecars.
The Challenger's longer wheelbase, larger dimensions and more luxurious interior were prompted by the launch of the 1967 Mercury Cougar, likewise a bigger, more luxurious and more expensive pony car aimed at affluent young American buyers. The wheelbase, at 110 inches (2,794 mm), was two inches longer than the Barracuda, and the Dodge differed substantially from the Plymouth in its outer sheetmetal, much as the Cougar differed from the shorter-wheelbase Ford Mustang. A/C and a rear window defogger were optional.
Exterior design was done by Carl Cameron, who also did the exterior for