A vehicular vision system includes a camera disposed at a side of a body of a vehicle equipped and having a field of view exterior and at least rearward of the vehicle. The camera includes a lens and a two-dimensional imaging array sensor. The lens of the camera has a center axis region and a peripheral region around the center axis region. The center axis of the lens is laterally offset from the center of the array of the imaging array sensor. A video display displays video images derived from image data captured by the camera, the displayed video images having (i) less distortion at displayed image portions representative of a region laterally closer to the side of the body of the vehicle and (ii) greater distortion at displayed image portions representative of a region further laterally outboard from the side of the body of the vehicle.