Production was authorised in 1956 and the vehicle entered production at Coventry in 1958 with first vehicles delivered to the army the following year. Production continued until 1972 by which time 1,177 vehicles had been built. The vehicle was succeeded in the British Army by the Alvis Scorpion CVR(T) which is armed with a new and lighter version of the 76 mm gun of the Saladin called the L23. The Saladin is officially known as the FV601(C) Armoured Car 76 mm Gun (Alvis Saladin Mk 2 6 x 6).

The Saladin has been replaced in all front-line British units by the Alvis Scorpion CVR(T). More recently, the 76 mm armed version of the Combat Vehicle (Reconnaissance) Tracked family of vehicles, Scorpion, has been phased out of service with the British Army. All other members remain in service including the more recent Sabre which had the turret of the Fox armoured car armed with a 30 mm RARDEN cannon.

Kuwait Army Saladin armoured cars were used against Iraqi units during the invasion of Kuwait City in the Summer of 1990.

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