Argentina uses a simplified and locally produced variant, the VCTP, and has a number of vehicles based on that platform constructed by Henschel and built by TAMSE.

10 pre-production vehicles were built and completed troop trials with the West German army between October 1968 and March 1969.

In May 1969, the vehicle was named the "Marder" after the European pine marten, an agile, short-legged, bushy-tailed, medium-sized carnivorous mammal in the weasel family.

The modification package included: The hull of the Marder 1 is all welded steel, giving protection from small-arms fire and shell fragments.

Later variants increased protection up to 30mm APDS, in response to the 30 mm autocannon armed BMP-2 and the development of top-attack cluster bomblets.

The vehicle is powered by an MTU MB 833 Ea-500 six-cylinder liquid-cooled sequentially turbocharged diesel engine which delivers approximately 441 kW (600 PS; 591 hp) at 2,200 rpm.

The Marder is propelled by a Diehl track, which can be fitted with rubber road pads or metallic grousers for improved mobility in snow.

The suspension is a torsion bar system, with hydrostatic shock absorbers fitted to the front two and last two road wheels.

On models since version 1A1A, a MILAN anti-tank guided missile launcher can be attached to the turret to provide enhanced anti-armour capabilities.

With the first unit delivered in summer 1971, the Marder IFV remained untested in combat for 38 years until July 2009 when they defended a German combat outpost against the Taliban in Chahar Dara district of Afghanistan's Kunduz Province, killing and wounding scores of enemies.

[2] Two Marders were damaged by improvised explosive devices in the course of a German-led offensive on Taliban fighters in Quatliam, on 31 October 2010.

Later in the battle, code-named by the Coalition "Operation Halmazag", a single Marder beat off a Taliban attempt to outflank positions held by German paratroopers.

On 29 March 2023, Ukrainian Minister of Defence Oleksii Reznikov announced that Marders donated from Germany during the 2022 Russian invasion of Ukraine had arrived in the country.

According to the Oryx blog as of 3 September 2024, at least 26 Ukrainian Marders had been confirmed to have been lost by photos or videos; 13 destroyed, 3 damaged, 8 abandoned and 2 captured.

A simplified version of the Marder is also employed as an infantry fighting vehicle, mortar carrier and command vehicle by the Argentine Army, realising most of the versions originally planned for the Bundeswehr and later abandoned due to costs and/or the availability of cheap alternatives like the M106 mortar carrier.

The Kanonenjagdpanzer and Raketenjagdpanzer 2 started development as part of the Marder family but were realised based on the second batch of prototypes using different engines etc.

Some 4–6 test models of a 120 mm mortar on a Marder chassis were built, and at least one is in use as a firefighting vehicle at the WTS Meppen.

During the Eurosatory Show 2012, Rheinmetall Landsysteme GmbH offered two further upgrades as part of the Marder Evolution family.

The first upgrade was the Marder APC which features a new M151 Protector remotely controlled weapon, replacing the original Rheinmetall MK 20 Rh 202 automatic cannon, ballistic protection comparable to STANAG Level 4+, and mine protection comparable to Level 3a/3b+.

The other upgrade was the Marder Medium Tank which features a rifled, stabilized 105 mm OTO-Melara gun in a new turret.

Improvements included upgraded suspension, a new MTU diesel engine with 690 hp (510 kW), and the availability to mount a modular armour package.