It was designed to replace the aging RAF-2203 and offer a new, modern vehicle to the newly opened market after the collapse of Soviet Union.

Only 1 prototype was ever produced until the bankruptcy of Rīgas Autobusu Fabrika in 1998.

The prototype was lost after the bankruptcy, but was found in Ventspils in 2017 and soon presented to the public.

Rīgas Autobusu Fabrika developed 2 concept models to replace the RAF-2203, the 1st concept being the RAF M1 'Roksana' and 2nd the RAF M2 'Stils' which was chosen as successor of RAF-2203, but start of mass production failed, hopes for small production failed soon after due lack of parts, budget and manpower.

The body building and engine installation was done in Riga experimental workshop, after which it was sent to United Kingdom for final design works.