Although at first the Ki-46 proved almost immune from interception, the Imperial Japanese Army Air Force realised that improved Allied fighters such as the Supermarine Spitfire and P-38 Lightning could challenge this superiority, and in July 1942, it instructed Mitsubishi to produce a further improved version, the Ki-46-III. This had more powerful, fuel-injected Mitsubishi Ha-112 engines, and a redesigned nose, with a fuel tank ahead of the pilot and a new canopy, smoothly faired from the extreme nose of the aircraft, eliminating the "step" of the earlier versions. The single defensive machine gun of the earlier aircraft was also omitted. The new version first flew in December 1942, demonstrating significantly higher speed (630 km/h (391 mph) at 6,000 m (19,700 ft)). The performance of the Ki-46-III even proved superior to that of the aircraft intended to replace it (the Tachikawa Ki-70), which as a result did not enter production.