First flown on 19 February 1938 and powered by the Argus As 10C, the Bf 163 V1 proved to have similar performance characteristics to those of the Fi 156 but was more complex and expensive. Although some components for a second prototype were manufactured, the Bf 163 V2 was not completed and further work on the Bf 163 was terminated in favor of the Fieseler Fi 156.