Based on the success of the earlier DV20/DA20 two-seat aircraft, the company designed a four-seat variant, the DA40 Diamond Star. The DA40 is a four-seat low-wing cantilever monoplane made from composite materials. It has a fixed tricycle landing gear and a T-tail. The Rotax 914-powered prototype DA40-V1, registered OE-VPC, first flew on 5 November 1997 and was followed by a second prototype DA40-V2 (registered OE-VPE) which was powered by a Continental IO-240. In 1998 a third prototype DA40-V3 flew powered by a Lycoming IO-360 engine. Four more test aircraft were produced followed by the first production aircraft in 2000. JAR23 certification of the IO-360 production variant was obtained in October 2000. In 2002 the production of the Lycoming-engined variant was moved to Canada and the Austrian factory concentrated on diesel-engined variants.