The TAM met the Argentine Army's requirement for a modern, lightweight and fast tank with a low silhouette and sufficient firepower to defeat contemporary armored threats. Development began in 1974 and resulted in the construction of three prototypes by early 1977 and full-scale production by 1979. Assembly took place at the local TAMSE plant, founded for the purpose by the Argentine government. Economic difficulties halted production in 1983, but manufacturing began anew in 1994 until the army's order of 200 tanks was fulfilled.