Henschel was a German locomotive manufacturer.
Soon after Hitler's rise to power, Henschel decided to start designing aircraft, one of the first being the Hs 123.
The aircraft was designed to meet the 1933 dive bomber requirements for the reborn Luftwaffe.
General Ernst Udet, a World War I ace, flew the first Hs 123V1 prototype on its first public demonstration fight on 8 May 1935.
The first three Henschel prototypes, powered by 485 kW (650 hp) BMW 132A-3 engines, were tested at Rechlin in August 1936.
Production of the type ended in October 1938 with less than 1000 aircraft in all series..