In the early 1950s, the German automobile concern Volkswagenwerk GmbH decided to expand the range of the Volkswagen Type 1 subcompact car (later officially named Käfer or Beetle), in particular a sports car, and to involve third-party companies, one of which was Porsche AG.
The first attempts to create a small car by Porsche company appeared back in 1949. The project was designated Type 402 and did not leave the stage of project documentation. Development of the Type 534 started in March 1952. The car received a two-door, four-seater body and was equipped with a 26.5 hp engine and a five-speed manual gearbox.
The Type 534 successfully passed the test cycle and in October 1953 was introduced to the general manager of Volkswagen concern Heinrich Nordhoff. However, he was not interested in it and the issue of production of Type 534 was not raised.