The second generation were the more heavily armored Panzer III and Panzer IV medium tanks. Ideally, the tank battalions of a panzer division were each to have three medium companies of Panzer IIIs and one heavy company of Panzer IVs. The Germans began to convert their tank battalions to a majority of Panzer III and IV medium tanks soon after the 1940 French campaign, thereby stealing a march on the Soviets and British, who still possessed obsolete equipment. Panzer III was the first of German Panzers to be equipped with intercom system for intank communications. Later on all of Panzers were equipped with this device which, proved to be very effective during combat. Panzer III was designed as platoon commander's vehicle (Zugführerwagen) and was Germany's first true medium battle tank. The Panzer III formed the bulk of the Panzer Divisions’ strength during early years of war. Also, in 1940/41, attempts were made to standardize the production of Panzer III and Panzer IV but soon after further development was halted.

Panzer I, Panzer II, Panzer III, Panzer IV, Panzer V (Panther), Panzer VI (Tiger I) and Panzer VI (Tiger II)

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