As a result of experiences in World War I, steel rails were installed over the top of the vehicle for cutting wire.

[2] Having had good results with the early car, another production run of a slightly modified version (the Lancia 1ZM) or "Model 1918" was ordered.

Sometimes difficult to identify from the original Lancia 1Z ("Model 1916"), the most obvious difference is the removal of the top machine gun turret.

However, some of the original 1Z series were modified to initial 1ZM standard by the removal of the extra top turret and up-dating the chassis.

The Lancia 1Z/1ZM armoured car saw little combat in World War I due to the mountainous terrain in which the Italian Royal Army (Regio Esercito) fought.

Some Lancia 1Z/1ZMs were sent to Spain during the Spanish Civil War and were used by the Italian Corps of Volunteer Troops (Corpo Truppe Volontarie Italia, or CTV).

A few obsolete Lancia 1Z/1ZM armoured cars were still in use with the Italian Royal Army during World War II.