Designed for use by the cavalry of the Imperial Japanese Army by Ishikawajima Motorcar Manufacturing Company, the Type 92 was meant for scouting and infantry support.

These wheeled armored cars were not suitable for most operations in Manchuria, due to the poor road conditions and severe winter climate.

[6][7] From the early 1920s, the Imperial Japanese Army Cavalry School based in Chiba prefecture tested a variety of European light tanks, including six Carden Loyd tankettes and several Renault FTs, and a decision was reached in 1929 to proceed with the domestic development of a new vehicle, based largely on the Carden Loyd design and intended to address the deficiencies of wheeled armored cars.

[6][11] After some initial problems with the running gear, the Type 92 proved well suited for the rough terrain and poor roads of Manchuria and China and was able to attain a speed of 40 km/h (25 mph).

Some vehicles were equipped with two searchlights for night operations and Type 94 Mk 4 Otsu radios (this 1934 model had a range of 0.6 mile and weighed 88 lb; it used a 23 ft (7.0 m) long antenna of "reverse L" shape).

[4] Later, the hull-mounted weapon was replaced with a manually aimed 13 mm Type 92 heavy machine gun, license-built from Hotchkiss.

[4] The weapon had limited traverse, but included a pivoting eyepiece on the gunsight optics and a high-angle mount, allowing anti-aircraft use.

Attempts were also made in 1933 to mount a 37 mm tank gun in the hull of the vehicle to give it "anti-tank capabilities".

[4] The engine hatches could be opened and locked together to form a seat for the gunner using the externally mounted machine gun.

[4] The re-armed early or "mid" production Type 92 included the 13.2 mm heavy machine gun in the hull.

[18] The Type 92 saw combat in China and Manchuria during the Second Sino-Japanese War,[17] including the Battle of Rehe with the 1st Special Tank Company of the 8th Division.