In fall 1936, designers at Manfred Weiss were instructed to develop and build an improved version of the V-4 tank, called V-4/40. As armament, the tank was mounted with a 40 mm gun and an 8 mm Gebauer coaxial machine gun. In spring 1938, work was completed in Csepel on a second prototype vehicle. The front part of the hull was significantly modified, while the turret was enlarged as much as possible with a cupola with observation devices. Several months later, the final tests of the V-4/40 were carried out. As a result, production of the tank was phased out due to its unreliability and poor mobility. After that, the vehicle's weapons were removed and it was used as a towing tractor until 1944. In 1945, the V-4/40 ended up with the Red Army as a trophy. The tank's further fate is unknown.