The Toldi is an adaptation of the Swedish L-60 Landsverk light tank and was imported to Hungarian in 1937 by the MAVAG Company with support from the Ministry of Defence. It was trialled against the Hungarian designed V-4 amphibious light tank built by the Manfred Weiss Company.
In trials, it proved itself better than the V-4, which had a number of teething problems. A number of design changes were sought by the Army Staff before the L-60 could be adopted for production. They recommended that the steering, transmission, vision, ventilation and suspension all be improved.
The licences to produce the L-60 was purchased off Landsverk by MAVAG and Ganz and the new tank was designated the 38M Toldi light tank.
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