Daimler-Benz received contracts in 1938 to equip Germany's four light divisions with PzKpfw IIs. 250 were delivered from 1938 to 1939.
The hull was a scaled down version of the hull being used in the PzKpfw III that Daimler-Benz was also producing.
Intended to be Schnellkampfwagen (fast fighting vehicle).
PzKpfw II Ausf E had different type of sprocket and idler wheel. The tracks and the torsion bar suspension were new.