Although the T-37 remained in service up to mid-1941, an improved light amphibious tank entered production during 1936 at the AMO factory, Moscow. Designated as T-38, this machine closely resembled the original T-37 but with improvements in the hull arrangement and transmission. The improved hull decreased both the height and weight, and the maneuverability of the tank was improved. The turret was offset to the left (as opposed to the right on the T-37), with the driver seated to the right. The turret was of the same type fitted on late T-37 tanks. The T-38 had new final drives in place of the automobile differential, and a better steering system than those used on the T-27 and T-37 tanks. A new improved suspension system with wider tracks increased the performance across marshy ground, and the Russians later stated that they have found this machine much more maneuverable than the earlier T-37 models. The prototype model had another lower, fixed turret for the driver situated to the right of the main one. T-38 with radios were specified as T-38M. A total of 1.354 T-38s were manufactured.
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