Leichter Gepanzerte Kraftswagen (Light Armored Truck) was developed by combining a Sd.Kfz. 10 chassis modified by Demag with an armored body produced by Bussing-NAG. The goal was to provide armored divisions with a multipurpose armored halftrack, capable of keeping pace with them and affording its occupants a degree of protection. The design was finalized in 1941, after two years of work, and the vehicle entered production. Over 4000 were produced before a modified version (designated as Neu, New) was introduced in 1943, with a simplified armored body and slightly reduced weight. 2000 were produced.
The 250/1 designation identifies the basic variant, designed to transport one half of a fireteam and equipped with a pair of MG 34 7.92mm machineguns for supporting them and self-defense.
There were two armored recon companies in the planned Panzer Aufklarungs Abteilung providing dismount capability to the Abteilung. These had the basic structure of a standard Panzer Grenadier Company instead using the Sd.Kfz.250 series of vehicles. The two companies had three platoons of three squads of 12 man squads with two Sd.Kfz.250/1.
21. Panzer's Panzer-Aufklärungs-Abteilung 21 unlike their panzergrenadier and pioneer counterparts were equipped with German equipment like Sd.Kfz.250 series of equipment.