DEUTZ Engines: More flexible positioning for volatile markets

In the Business Unit Engines, our traditional combustion engine business is bundled. Development, production and sales work closely together within the unit and share responsibility for the business. The reorganization of the former Classic division into a Business Unit ensures short decision-making paths, rapid response times to customer inquiries, greater market proximity and internal transparency regarding products, delivery capability, further developments and customer requirements. This makes us more agile, more flexible and overall more resilient. 

This structure is the organizational response to a business that has to function reliably even under difficult market conditions. Especially in an environment characterized by volatile economic cycles, it is crucial to be close to the customer and to act pragmatically. 

The 2025 financial year was not easy. The expected economic upturn in Germany failed to materialize and the Business Unit Engines had to cope with a persistently difficult market environment. Nevertheless, we performed well and kept our promise to the capital market. 

The highlights of 2025 include the start of series production of the DEUTZ TCD 3.9/4.0, which is seeing very strong demand from international OEMs. This combustion engine was developed specifically for customers in the construction industry and is extremely powerful, compact, reliable and efficient. The all-rounder covers an output range from 75 to 129.4 kW. Thanks to numerous options, it is modular and can be used in a wide range of applications. We also – to the surprise of the market – were able to add a new engine from a partner company to our portfolio: the 24‑liter V12 engine with up to around 780 kW, intended primarily for power generation. A pilot project is currently underway with a customer in Italy; the official product launch is planned for the course of 2026. This allows the Engines unit to tap into the growth market for power generation and backup power solutions in a targeted manner and creates synergies with the Business Units Energy and Defense. 

Our concept for a new compact 6‑liter engine – the TCD 6.0 – for construction and agricultural machinery also attracted attention. Our primary target market here is China. The engine delivers a lot of horsepower in a small space. We presented the concept for the first time in November 2025 at Agritechnica and received very positive feedback from the expert audience. Another pleasing development last year was the successful integration of the Daimler Truck engines into our portfolio. 

A key competitive advantage of DEUTZ engines is their high flexibility. Customer requirements vary greatly depending on application, region and operating profile. The Business Unit Engines does not work with off‑the‑shelf solutions, but builds engines specifically to meet customer needs in the best possible way. Adjustments to interfaces, add‑on parts, performance characteristics or peripherals are part of day‑to‑day business. It is precisely because of this ability to individualize that DEUTZ is often the first choice for many OEMs when it comes to complex off‑highway applications. 

Clear focus on markets with demand 

At DEUTZ we are fully aware that demand for combustion engines will decline in the long term. In the short and medium term, however, they will remain indispensable in most off‑highway applications. Synthetic fuels and, in the future, hydrogen will extend their use even further. In agriculture, on construction sites, in fire-fighting and special-purpose vehicles, or in power generation under extreme conditions, battery-electric solutions are still reaching their limits. That is why the combustion engine will continue to play a role wherever it is technically and economically required. This applies above all to larger models, which are increasingly becoming our focus. 

DEUTZ’s ambition is to supply the best and cleanest combustion engines – with the clear aim of positioning DEUTZ among the world’s three leading independent engine manufacturers. The new setup as the Engines Business Unit enables DEUTZ to respond more quickly to changing market requirements, further develop existing products and systematically address new fields of application. 

The Engines Business Unit focuses on markets with clear demand, including the USA. India is also an important future market. Cooperation with the Indian agricultural machinery group TAFE Motors is progressing according to plan; production ramp‑up started in July 2025, and series production is scheduled for 2027. 

In addition to regional markets, we are targeting attractive new segments: looking ahead, the Engines business will benefit significantly from rising demand for combustion engines for backup power in electricity supply. In this segment, we will in future offer larger models and new solution packages in cooperation with partners. The growing demand in the defense market is also opening up new sales opportunities. Here, synergies arise with the Business Units Energy, Defense and also NewTech. Another major asset of DEUTZ engines is excellent service. The global service network and reliable, fast support are powerful selling points and support the Engines business. 

Mr. Villinger, how do you look back on the 2025 financial year? 
Markus Villinger, Head of Business Unit Engines: The market was weak and the hoped‑for upturn failed to materialize. At the beginning of the year, many indicators were still pointing up, but this did not prove to be the case. So we cannot say we are satisfied. At the same time, we at DEUTZ achieved our targets and held our ground in a difficult environment. That shows our measures are working. 

What were the highlights for the Engines Business Unit in 2025? 
Markus Villinger: A key highlight was the start of series production of the new DEUTZ TCD 3.9/4.0. In addition, we were able to expand our portfolio to include a 24‑liter engine intended primarily for power generation. We also presented a concept for a new 6‑liter engine that will address new markets going forward. 

At the turn of the year 2025/2026, the Classic division became the Business Unit Engines. What is changing? 
Markus Villinger: We have brought development, production, sales and supply chain closer together. The goal is very clear: speed. Decisions no longer have to be coordinated across several levels, but are made within the Business Unit. This makes us faster and closer to the market. At the same time, as a unit we assume responsibility for results across the entire product lifecycle. 

Where do you currently see particularly strong market potential for combustion engines? 
Frank Bürschgens, Head of Portfolio & Product Management, Business Unit Engines: A fast‑growing area is power generation. Demand for backup solutions for data centers and critical infrastructure is increasing because power grids are not always stable. Today, this demand is primarily met by reliable combustion engines. This market is currently growing very dynamically. 

What is it that makes DEUTZ engines special from the customer’s point of view? 
Frank Bürschgens: Of course, quality, performance and robustness are paramount. The decisive factor is the combination with our global service. Many customers come to us because they operate their machines worldwide and want to be sure that they receive optimum support wherever they are. This overall package creates trust and long‑term customer relationships.