Designed to be an inexpensive tank orientated towards militaries with smaller defence budgets, the AMX-40 featured a lightly armoured hull and good mobility reminiscent of previous French MBTs with a powerful 120 mm cannon.

[1] As the AMX-32 had failed to attract any potential sales, GIAT decided to produce yet another upgrade, the AMX-40 Main Battle Tank.

It ceased being offered for export in 1990, when the end of the Cold War brought lots of surplus MBTs on the market.

Since the elevation (up to +40°) system can be operated independently of that of the 120 mm gun,[3] this armament provides a not inconsiderable capability for defense against ground and air targets.

In addition, a 7.62 mm AAN-F1 light machine gun for short-range anti-aircraft or ground defense is linked to the hatch of the TOP 7 commander cupola.

The gunner has a M581 monocular telescopic sight with a magnification of x10, it is fitted with a CILAS laser rangefinder and linked to the COSTAC integrated automatic fire control system.

The tank was powered by a 24,690 cc (1,507 cu in) 1,100 horsepower (820 kW) Poyaud V12XS25 diesel engine coupled to an automatic ZF LSG 3000 transmission.

The front turret and hull armour incorporated spaced armor bulkheads with high-hardness outer steel plates.

Despite the armour afforded to the AMX-40, it was still considered light by late Cold War standards, especially when compared to NATO contemporaries such as the heavier M1 Abrams, Leopard 2 and Challenger 1.

It was found that power of the engine (800 horsepower (600 kW)) was deemed a bit inadequate and the viewing arc of the commander's cupola should be reviewed.

Finally, an inertial reference unit was fitted to the turret mantlet allows firing on the move using gunner's day and night sights.