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To improve on the T-62, two designs based on the tank were tested in 1964: Nizhny Tagil's Object 167 (T-62B) and Kharkiv's Object 434. 434 was a technically ambitious prototype. Under the direction of Morozov in Kharkiv, a new design emerged with the hull reduced to the minimum size possible. To do this, the crew was reduced to three soldiers, removing the loader by introducing an automated loading system. 167 was designed based on an Object 140 rebuilt by Kartsev and Valeri Venediktov. 166, and was also Kartsev's favored model. 166 for production, Kartsev disagreed and instead offered to prepare the Ob. This suggestion was rejected, and the Ob. 165 were readied as the T-62 and T-62A respectively. Unlike the Kharkiv tank, it eschewed the state-of-the-art. Prototypes used the turret from the T-62, and a manual loader. In 1964, the tank underwent comparative testing with the Ob. 434, in which the former proved its superiority to both the T-62 and T-55. 167 was favored by Uralvagonzavod director I.V. Okunev and Soviet Premier Nikita Khrushchev, who believed the tank was more affordable.

Deputy Chairman of the Council of Ministers of the Soviet Union Dmitry Ustinov, believed the parallel development of Ob. 167 jeopardized the future of the Kharkiv tank. In December 1962, the Council of Ministers of the Soviet Union ordered Ob. 432 (later serialized as the T-64) into production, dooming Kartsev's tank. Problems with the early production run were evident from the start, but a strong lobby formed around Morozov who advocated for Ob.

434 in Moscow, preventing rival developments and ideas from being discussed.

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