In August 1991, the Swedish Army decided to purchase from Germany over 1,000 of the Russian designed and built MT-LB family of vehicles, which had been used by the former East German Army.

A further five MT-LB vehicles, which had been upgraded to meet a number of Swedish requirements, were purchased from Germany. Three of these were in the armoured personnel carrier configuration, one was an armoured recovery vehicle configuration and the fifth was a further improved armoured recovery vehicle with a turbocharged diesel engine.

In 1993, four MT-LBU vehicles were tested, and one of these was a mineclearing vehicle.

In November 1993, the final contract was signed with Germany, which covered the supply of over 1,000 vehicles, of which 450 were to be renovated and improved in 110 areas to meet the requirements of the Swedish Army. This work was carried out in Germany by Neubrandenburg Fahrzeug Werke.

Of the 660 MT-LBs purchased, 450 were subsequently renovated as the Pbv 401 with the remaining 210 being delivered complete and scrapped as spare parts.

Modifications to meet the requirements of the Swedish Army included new lighting system, new roof hatch and large box on the roof rear for equipment. The turret-mounted 7.62 mm PKT machine gun has been retained, this having the Swedish designation of the MG 95. All the vehicles have provision for the installation of a 7.62 mm MG 58 machine gun on the roof.

The Pbv 401 can quickly be converted for use as an armoured personnel carrier, command post vehicle or missile carrier, for example the now SAAB Bofors Dynamics RBS 56 Bill.

In total 90 MT-LB armoured recovery vehicles have been purchased and these have the local designation when refurbished of the Bgbv 4102.

Of the 1,059 vehicles purchased, 81 are in the MT-LBU command post version, or ACRV as it is referred to in the west. It is expected that 35 of these will be rebuilt as command post vehicles and 25 as ambulance vehicles.

Finally, 228 122 mm 2S1 self-propelled howitzers were acquired, all of which were scrapped, with their engines, transmissions and tracks being used to support the MT-LB.

Details of this vehicle, essentially a modified Russian BMP-1 infantry combat vehicle, are given in a separate entry.

Production complete. In service with Swedish Army. Upgrade programme complete. The Pbv 401 is expected to be replaced in the future by a new vehicle based on the experimental SEP chassis, which is being developed in tracked and wheeled (6 × 6) models. As of mid-2006, no date had been announced as to when the Pbv 401 APC would be replaced in Swedish Army service.