When Germany occupied Czechoslovakia in March 1939, only ten of the new LTvz. 38 tanks had been built for the Czech Army. Germany was quick to appreciate the outstanding design features of the tank, and ordered production of the Panzer 38(t) to continue. The chassis was subsequently used for the Marder III tank destroyer, which featured a captured Soviet 7.62cm PaK 36(r) gun. When supplies of these Russian weapons began to run short, the vehicle was modified to accept the German 7.5cm PaK 40/3 L/46 gun. The resulting vehicle was produced from November 1942 to April 1943 on the Pz.Kpfw. 38(t) Ausf. H chassis.