With the introduction of the Type 90 MBT, it was believed that the large vehicle was far from suitable for rapid deployment in the confined urban areas of the Japanese Home Islands, in the event of an outbreak of hostilities. As a result, the Type 90 would primarily be stationed on the spacious island of Hokkaido.
This development sparked the need for a smaller and more flexible combat vehicle to be made, which would substitute the Type 90 in such problematic areas. As a result, plans were made to modernise existing Type 74 MBTs with some of the most advanced equipment and technologies available at the time, in order to bring the vehicle up to standard.
The resulting Type 74 mod G/Kai, as it became known, featured numerous improvements over previous versions, most of which were inherited from the Type 90, such as the state-of-the-art ballistic targeting computer, for example. Further improvements were made to the vehicle’s protection, with the installation of side-skirt panels and CBRN equipment as well some improvements being made to the vehicle’s mobility - reverse speed was increased, to only mention a few examples.
The first prototype of the Type 74 mod G/Kai was built in the early 1990s, followed by 4 further production vehicles being manufactured. However, as the Cold War came to a close and due to the modernisation effort proving to be too expensive, the project was abandoned shortly afterwards. In the end, the initial five Type 74 mod G/Kai produced also turned out to be the last. These units are still in active service with the JGSDF today.