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Another key factor in the Corvette's survival was Ford's introduction, in 1955, of the two-seat Thunderbird, which was billed as a "personal luxury car," not a sports car. Even so, the Ford-Chevrolet rivalry in those days demanded that GM not appear to back down from the challenge. The "T-Bird" was changed to a four-seater in 1958.

The second or mid-year generation, designed by Larry Shinoda, with major inspiration from a previous unproduced design called the "Q Corvette" by Peter Brock and Chuck Pohlmann, and under the styling direction of Bill Mitchell, started in 1963 and ended in 1967. 1963 would see the introduction of the new Corvette Sting Ray coupé with its distinctive split rear window and fake hood vents as well as an independent rear suspension. The split rear window was discontinued in 1964 due to safety concerns. Because they made the design too busy, the hood vents were also cut. Power for 1963 was at 365 hp (272 kW) hitting 375 hp (280 kW) in 1964.

Four-wheel disc brakes were introduced in 1965, as was a "big block" engine option (the 396 (6.5 L) V8). Side exhaust pipes appeared on the 1965 Sting Ray and persisted through 1969. Chevrolet would up the ante in 1966 with the introduction of an even larger 427 (7 L) version, creating what would be one of the most collectable Corvettes ever. 1967 saw a L88 version of the 427 introduced which was rated at 430 hp (321 kW), but unofficial estimates place the actual output at 550 hp (410 kW) or more. Only twenty such engines were placed in the 1967 Corvette, and the cars can fetch US$600,000 or more in auction today. From 1967 to 1969, the 1282 ft³/min Holley triple two-barrel carburetor, or Tri-Power, was available on the 427. The 1967 Corvette originally was going to be the first of the C3 generation; however, due to delays the C3 had to be put off until 1968. Other early options available on the C2 included an AM-FM radio (mid 1963), air conditioning (1963), a telescopic steering wheel (1965) and headrests, presumably to prevent whiplash (1966).

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The 1965 introduction of the 425 hp 396 big block was ultimately the harbinger of doom for the Rochester fuel injection system. The 396 option cost $145 while the fuel injected 327 engine cost $500. Few people could justify spending $355 more for 55 hp less. When less than a thousand fuel-injected cars were built in 1965, Chevrolet stopped the program.

In 2004, Sports Car International named the Sting Ray number five on the list of Top Sports Cars of the 1960s.

In 1962 Corvette chief engineer Zora Arkus-Duntov came up with a lightweight version of the C2. Concerned about Ford and what they were doing with the Shelby Cobra, GM planned 100 Grand Sport Corvettes. The plans never came about and only five were built. They were driven by historic drivers such as Roger Penske, A. J. Foyt, Jim Hall, and Dick Gullstrand among others. The Grand Sports, however, had many issues; the aero package made for a very frightful driving experience to say the least. Delmo Johnson said it was "the only car I ever drove that would lift the front wheels off the ground in all four gears." Dick Thompson was the only driver to drive the Grand Sport to victory. He won a Sports Car Club of America race at Watkins Glen. Today there are only five left, cars 001-005 all held by private owners. They are among the most coveted and valuable Corvettes ever built.