This was followed by the DN-IV, which is based on a 6.5 tonne chassis with the diesel engine mounted at the rear. These are also referred to as the Caballo. It is understood that 40 of these vehicles are in service.

At least two versions of these were developed, one fitted with a one-person turret armed with a 20 mm cannon and the other with a turret similar to that fitted on the DN-III, armed with an externally mounted 7.62 mm machine gun. A 7.62 mm machine gun could also be installed at the rear of the hull. The troop compartment is provided with firing ports and associated vision devices.

In the early 1960s these Caballo vehicles were overhauled and modernised and some were fitted with a French SAMM (now TRW Aeronautical Systems) one-man manually operated turret armed with 7.62 and .50 (12.7 mm) machine guns.

The Caballo is powered by a DINA Cummins V8-504 eight-cylinder diesel engine.