The Sd.Kfz.251/1 Ausf.A made its debut in 1937. It retained the chassis and engine of the original Sd.Kfz.11, with inclining armor plates added onto the chassis, with two MG34 machine guns mounted onto the armored hull. Fuel capacity was also increased from 110 l. to 160 l.. In order to reduce its height, the steering wheel was modified to a declining position. In addition to a crew of two, it was able to carry 10 infantrymen. Other than serving as an armored personnel carrier, the Sd.Kfz.251/1 served in diverse roles, and was produced or modified into many variants.

On the later Ausf.B and Ausf.C adapted strengthen hull structure and an armor shield for the machine gun mount. A total of 4650 Ausf.As, Bs, and Cs were produced from 1937 to 1943. In 1943, the Ausf.D was introduced, which has a largely simplified hull structure in order to improve efficiency of production. Appearance of the Ausf.D was drastically different from its predecessors. Despite having a completely welded hull, the engine exhausts that were originally mounted on the fenders also became integrated into the side armor plates. The aft personnel exit was enlarged and given a more declining angle, mounted machine guns were also changed from MG34s to MG42s.

A total of 10602 of Sd.Kfz.251/1 Ausf. D were produced between 1943 and the end of the war, which was a much greater quantity than the total of Ausf.As, Bs and Cs combined. Many successful variants were also introduced, making it the backbone of late-war German mobilized units.