The 38M Toldi light tank entered into service in 1940. Before that time the Army had its WWI style armored trains, armored cars and the tiny Italian FIAT Ansaldo tankettes. The 38M Toldi light tank and its Swedish origin the L-60 were the same class as the German Pz. II, the Polish 7TP, the Soviet T-40 and T-60 light tanks, designated for reconnaissance and liaison role. However, at the beginning of the war it was the only tracked armored vehicles of the Hungarians to fight the Red Army in 1941.
The 38M Toldi light tank was also the first armored vehicle produced by the Hungarian War Industry during the war.