From 1935 the DAF automobile company designed several armoured fighting vehicles based on its innovative "Trado" truck suspension system. Among these was the "Pantrado 2", an armoured car. From 1936 the Dutch military encouraged DAF to develop this type into the "Pantrado 3", a design more closely meeting army specifications for a reconnaissance vehicle, in order to establish a small indigenous armoured vehicle production capacity. A prototype was built and in early 1939 twelve vehicles were ordered of the DAF M39 type, the last of which was delivered in January 1940. The vehicles were destined to equip reconnaissance platoons of four cavalry hussar regiments.