German tanks were generally inferior to Allied and Soviet designs in the pre-war years.
The Germans were limited in what they could build due to the restrictions imposed upon them by the Treaty of Versailles, limiting their military. Indeed this treaty stated that they were not allowed any tanks at all but in the 1930s as they began to re-arm the treaty was largely ignored.
When Germany invaded France in 1940, their tanks were inferior to the French (and British) designs as this quote from Wikipedia (and Heinz Guderian) illustrates:
The French Army preferred to fight a defensive battle and built tanks accordingly. But there were some instances when some of the French tanks were able to slug it out with the German tanks and get the better of it, sometimes spectacularly so as when on 16 May a single Char B1 French heavy tank, the Eure, frontally attacked and destroyed thirteen German tanks lying in ambush in Stonne, all of them Panzer IIIs and Panzer IVs, in the course of a few minutes. The tank safely returning despite being hit 140 times (this event is not trackable in German documents and relies on the statements of the crew). Similarly, in his book Panzer Leader, Heinz Guderian relates the following incident, which took place during a tank battle south of Juniville: "While the tank battle was in progress, I attempted, in vain, to destroy a Char B with a captured 47 mm anti-tank gun; all the shells I fired at it simply bounced harmlessly off its thick armor. Our 37 mm and 20 mm guns were equally ineffective against this adversary. As a result, we inevitably suffered sadly heavy casualties".
The main reason that Germany won so decisively in early battles was due to Blitzkrieg tactics and the way their armour was organised. The French tended to use their tanks in defensive positions that negated the advantage of mobility and they spread them out so tanks were not concentrated together. This meant when French tanks did engage German armour they were almost always fighting against superior numbers.
The Panzer IV was the most advanced German tank produced before the war:
Total numbers were around 200 before the outbreak of war.
Strangely the Germans didn't learn the lessons of the Blitzkrieg themselves and when faced with the more agile and numerous Russian T34 tank they produced slower and more expensive tanks that were always going to be outnumbered.