In February 1936 at the Berlin Motor Show, Daimler-Benz presented the 260 D in the form of a six-seater Pullman landaulet, 13 units of which had been built since July 1935.
At the same show, there was the Hanomag Rekord, another diesel-engined passenger car, although this did not go into series production until 1938. Consequently, the 260 D was the world’s first series-produced diesel-engined passenger car. From September 1936, the 260 D was available in more body variants. Apart from the Pullman Landaulet, there were three other versions: a closed Pullman sedan, a four-seater, and a four/five-seater convertible.

In 1937, a facelifted variant was launched with some modifications to the radiator. The headlights were smaller and enclosed in spherical housings, directly attached to the front fenders. That solution led to the dispense of the chrome-plated transverse rod in front of the radiator.

Inside, the 260 D was very spacious due to its long wheelbase. It was offered in various versions, with seating for up to seven passengers. It was mostly used by the cab-companies, proving the fuel-efficiency of the diesel engine.

It featured a 2.6-liter four-cylinder engine that offered 45 hp mated to a four-speed manual transmission with direct-drive fourth gear. By December 1940, 1.967 units of the 260 D, known within the company as the W 138, had been built.