Lacking the experience and resources to design a tank, the Argentine Ministry of Defense contracted German company Thyssen-Henschel.

The TAM met the Argentine Army's requirement for a modern, lightweight and fast tank with a low silhouette and sufficient firepower to defeat contemporary armored threats.

Assembly took place at the local 9,600-square-meter (103,000 sq ft) TAMSE plant, founded for the purpose by the Argentine government.

Economic difficulties halted production in 1983, but manufacturing began anew in 1994 until the army's order of 200 tanks was fulfilled.

The TAM has never seen combat, although 17 VCTPs were deployed to Croatia for the United Nations UNPROFOR peacekeeping mission.

In their attempts to procure equipment from the United States, Argentina could only secure 50 M41 Walker Bulldogs (undelivered) and 250 M113 armored personnel carriers.

It was hoped that European technology could stimulate Argentine industry so the country could produce its own armaments in the future.

The contract called for a transfer of technology resulting in a program to develop a tank in line with the government's requirements and under a technical team that included both German and Argentine engineers.

The hull of the German Marder armored personnel carrier was used,[3] and the chassis was strengthened to support the increased weight of the TAM.

[4] Two prototypes were manufactured in late 1976 and early 1977,[5] which were put through extensive testing for two years and over a road range of 10,000 km (6,200 mi).

[6] The new tank's firepower requirements were met by fitting a British Royal Ordnance L7A1 105 mm (4.13-inch) main gun.

[10] It is designed to fire the M735A1 armor-piercing fin-stabilized discarding sabot, which can penetrate a maximum of 370 mm (14.6 inches) at 1,000 meters (1,100 yd).

[13] The TAM's engine requirements included low weight and volume, but with a fast rate of acceleration and high reliability.

The program chose MTU's MB-833 Ka 500 diesel engine, producing 540 kW (720 hp) at 2,400 rpm.

To enable the crew to fire effectively at night, a low light level television (LLLTV) camera, which moved in elevation with the main gun, was fitted to the mantlet.

These vehicles were produced by an Argentine company, Tanque Argentino Mediano Sociedad del Estado (or TAMSE) founded by the government in March 1980.

[22] No other variants of the TAM, including the VCLC, VAC and VCRT were put into production due to budget restrictions.

The factory is completely covered, with two warehouses for storing components, quality control laboratories, a project office, an engine test room and a firing range.

Also participating in the production of TAM and variant components were Argentine companies Military Factories General San Martín (manufacturing the chassis), Río Tercero (turret and armament) and Bator Cocchis, S.A.[24] The TAM vehicle family has never seen combat, although it has been deployed on peacekeeping operations.

The Argentine Army did not deploy its existing AMX-13 tanks, deeming them unsuited to the boggy off-road conditions in the Malvinas Islands.

[26] During the 1990s, an Argentine battalion deployed to Yugoslavia as part of United Nations peacekeeping operations was accompanied by 17 VCTPs.

All personnel can fire their weapons from inside the vehicle, and the VCTP's turret is armed with Rheinmetall's Rh-202 20 mm (0.79-inch) autocannon.

The VCA-155 is an elongated TAM chassis fitted with Oto Melara's Palmaria 155 mm (6.1-inch) self-propelled howitzer turret.

[31] The VCTM carries an AM-50 120 mm (4.7-inch) internal mortar, which has a range of 9,500 meters (31,167.98 ft) and a rate of fire of 8 to 12 shots per minute.

The TAM S 21 was equipped with an Israeli thermal sight, allowing the vehicle to better perform at night or in adverse weather conditions.