As the main battle tank from the mid-1970s to the 1980s, the Type 74 tank is the second-generation tank designed by Japan after the war. The development work began in 1964. A number of test bench vehicles were built and tested between 1964 and 1967. After completing the component development and test tasks in 1967, the prototype began to be developed, which was named STB, which means "second generation domestic tank prototype". Beginning in 1968, two complete vehicle trials were carried out. The first complete vehicle trial production produced two prototypes. STB1 was made in June 1969, and STB2 was made in July 1969. STB1 was equipped with the British L7A1 artillery and used an automatic loader. The two prototype vehicles underwent extensive technical and operational testing. On the basis of the first complete vehicle trial production, 4 prototype vehicles STB3~STB6*** were improved and trial-produced within one year from November 1970 to November 1971, and the automatic loading machine was canceled in order to reduce costs and Simplify the structure and improve reliability. From December 1971 to February 1973, four prototype vehicles underwent roughly the same technology and usage tests as STB1 and STB2. In addition, shooting and maintenance tests were also conducted. The test results basically met the tactical and technical performance requirements. Before it was officially finalized, appropriate improvements were made, and it was finally finalized in September 1974 and named the Type 74 tank. The total cost of developing the tank is approximately 2.5 billion yen.
The first batch of production vehicles was received in September 1975. Production was discontinued in 1990, with a total production of 870 vehicles. The price of each tank is approximately 376 million yen based on 1984 currency value. Except for the gun, which was manufactured in Japan in accordance with a British patent, and the sabot armor-piercing projectiles used in the gun, which were produced under a British patent license, all other components of the tank were independently developed by Japan.
The Japanese Defense Agency began to officially modernize and improve the tank in 1990, and plans to retrofit all 870 Type 74 tanks. It is expected to start equipping the improved Type 74 tanks in 1993. The modernization improvement work mainly involves updating the tank's fire control system, using the latest technology reserved for the development of the next generation Type 90 tank. In order to have roughly the same performance as the Type 90 tank fire control system, a high-tech computing system is required that uses computers to calculate everything from capturing the target to aiming and shooting. It is possible to change the ruby ??laser medium in the laser rangefinder to CO2 laser medium, and there are also plans to improve the artillery shells and increase the engine power. The estimated cost of improving each tank is about 100 million yen.