Market and competitive environment

DEUTZ manufactures diesel engines for professional applications used in countries with stringent emissions standards, in particular EU Stage III A, III B and IV (as well as the equivalents in the US and other countries). These technically sophisticated applications include construction equipment, agricultural machinery, lifting and material handling equipment, pumps, gensets, medium-duty trucks and buses. The market for DEUTZ engines is therefore separate from the market segments for diesel engines used in passenger cars and small commercial vehicles up to a permissible gross weight of 3.5 tonnes. Engines that rely on outdated technology and that are intended for use in applications in countries or application segments with only very low requirements in terms of product quality, emissions and fuel consumption also do not feature in our target market. The market for technically sophisticated diesel engines can be divided into the captive segment and the non-captive segment. The captive segment comprises equipment manufacturers who produce their own engines; some of these manufacturers are also active as engine suppliers in the market. The non-captive segment is made up of equipment manufacturers who for the most part do not produce their own engines and who, therefore, buy in engines from suppliers. It is in this non-captive market that DEUTZ sells high-value engines with outputs between 25 kW and 520 kW around the globe.

We have attained a good position as one of the biggest suppliers in the non-captive market. We face competition from rival engine suppliers in western Europe, North America and Asia, but none of these competitors can offer an identical product range to DEUTZ in terms of the power outputs and application segments that they cover.

Main competitors    
Application segments Applications Main competitors
(in alphabetical order)
Construction Equipment Excavators
Wheel loaders
Pavers
Mining equipment
Cummins, USA
Isuzu, Japan
Weichai, China
Yanmar, Japan
Material Handling Forklift trucks
Telehandlers
Lifting platforms
Ground support
equipment
Cummins, USA
VW, Germany
Yanmar, Japan
Zhejang Xinchai, China
Agricultural Machinery Tractors
Harvesters
Deere, USA
Kubota, Japan
Perkins, UK
Yanmar, Japan
Stationary Equipment Gensets
Pumps
Compressors
Cummins, USA
Kubota, Japan
Perkins, UK
Yanmar, Japan
Automotive Rolling stock
Special vehicles
Trucks
Buses
Cummins, USA
Fiat Powertrain, Italy
MAN, Germany
Mercedes, Germany