A camera assembly process for assembling a camera for a vehicle vision system includes aligning and affixing an imager PCB at a lens holder so as to align an imager with a lens. A connector PCB is electrically connected to the imager PCB. The lens holder, the connector PCB and the imager PCB are inserted into a housing portion, and a cage retains the connector PCB at the housing portion. A connector assembly is disposed at a rear portion of the housing, and electrically conductive terminals of the connector assembly electrically conductively connect to electrically conductive terminals of the connector PCB at a rear opening at the rear portion of the housing. The lens holder and the connector assembly are movable along a longitudinal axis of the camera assembly relative to the housing portion and adhesively retained thereat.