The decision to replace the Tatra T111 was made in 1952 as part of a central state planning economy, where Tatra Kopřivnice was to produce 7-10 ton utility trucks. In 1956 at II. Czechoslovak Machinery Expo in Brno, Tatra exhibited 2 new models, the T137 and T138. Both vehicles had up to 70% of parts in common across the range. New design features were introduced, such as improvement in driver environment and usability e.g. hydraulic power steering, a compressed air assisted clutch and electro-pneumatic auxiliary gearbox gear selection.