In an attempt to increase tank output in summer of 1941, the Kharkov Tractor Zavod (»KhTZ« or »XTZ« in cyrillic) installed one inch armour plates around the STZ-3 that was already in production since 1937. On top came a 45 mm gun turret resulting in the new KhTZ-16. However, only a mere 50-60 samples were finished until the Germans captured KhTZ in October of 1941.
The KhTZ-16, built at the Stalingrad Tractor Zavod (»STZ« or »CTZ« in cyrillic) as well, was a typical example of an agricultural design (mis)used for military purposes.