The CM-32 has been developed to meet the operational requirements of the Republic of China (ROC) Army. The first series of prototypes were completed in the 1990s and some of these vehicles had the development designation of the CM-31.

By 2006 trials with four prototypes (designated 0,1, 2, and 3) of the CM-32 (8 × 8) APC had been completed and a pre-production batch of 15 vehicles were being built. The CM-32 is also referred to as the Yunpao (Cloud Leopard).

These pre-production CM-32 vehicles incorporated a number of improvements as a result of feedback from the extensive firepower and mobility trials with the first four prototypes.

It is understood that the batch of 15 pre-production vehicles now built, include seven in the base line APC configuration with a combat weight of about 22 tonnes and fitted with a remote-control weapon station armed with a 7.62 mm or .50 (12.7 mm) M2 HB machine gun (MG).

The remaining eight will also be in the APC version but have a combat weight of 24 tonnes. These will be fitted with a two-person power-operated turret armed with a stabilised 25 mm M242 cannon, 7.62 mm co-axial MG and a roof-mounted 7.62 mm for local and air defence purposes. None of these pre-production CM-32 vehicles will be amphibious.

It is understood that there has been some foreign involvement in the design and development of the CM-32 at various levels. Some sources have estimated that the total value of the programme will be as much as NT36 billion (USD1.5 billion), with up to 1,400 vehicles being built. The first batch is expected to consist of 650 units.

Today it is estimated that the ROC Army deploys over 200 of the locally developed Armoured Infantry Fighting Vehicle (AIFV), 800 now BAE Systems, Ground Systems M113 series APCs and variants and over 160 US Textron Marine and Land Systems V-150 (4 × 4) vehicles. The ROC Army uses many variants of the latter, including armed with 3,750 m TOW ATGW and 81 mm mortar carriers.

The layout of the new CM-32 (8 × 8) APC is similar to other vehicles of this type such as the Swiss MOWAG Piranha and Patria Vehicles Armoured Modular Vehicle.

The hull is of all-welded steel armour with the driver seated at the front left and the power pack to the right. The driver has a single-piece hatch cover and day periscopes that provide observation to the front of the vehicle. The middle day periscope can be replaced by a passive periscope for driving at night.

The power pack consists of a Caterpillar C9 diesel engine developing 410 hp coupled to an Allison HD4560P automatic transmission. The air inlet and outlet louvres are in the roof of the vehicle. Maximum road speed is 110 km/h. While the base line APC model will have a roof-mounted machine gun, the IFV model is fitted with a two-person power-operated turret armed with a 25 mm cannon and 7.62 mm coaxial machine gun. This is laid onto the target using a day/night sighting system. The 25 mm is an ATK Gun Systems Company 25 mm M242 Chain Gun.

Mounted on the turret roof is a 7.62 mm machine gun for local and air-defence purposes and mounted on either side of the turret front is a bank of electrically operated smoke grenade launchers.

The six troops enter and leave the vehicle via the rear and roof hatches are provided over the rear troop compartment.

Steering is power-assisted and standard equipment includes independent suspension and a central tyre pressure-regulation system that allows the driver to adjust the tyre pressure to suit the terrain being crossed. It is assumed that the vehicle has an NBC system fitted as standard.

It is understood that some versions of the CM-32 will be fully amphibious being propelled in the water at a maximum speed of up to 10 km/h by two water jets mounted one either side at the rear of the hull.

In addition to the APC and IFV models, a wide range of other models are to be developed and fielded. These are expected to include a direct-fire platform armed with a 105 mm M68A1 rifled gun carrying 32 rounds of ammunition, air defence armed with the locally developed Tien Chien 1 (Sky Sword 1 surface-to-air missile system), ambulance, command post vehicle, mortar carrier (including 120 mm breech-loaded mortar), and repair and recovery.