DUESSELDORF, Sept 28 (Reuters) - Specialty diesel engine maker Deutz aims to expand its business to include hybrid and battery-powered engines from 2020, banking on an expected boom in demand for electric vehicles.
“In future, we no longer want to operate just as a pure diesel group,” Chief Executive Frank Hiller told Reuters on Thursday, a day after the group acquired electric drive specialist Torqeedo.
The takeover has swallowed most of the 100 million euros ($118 million) in investments allocated to the new push, Hiller said, adding he expected the new products to account for 5-10 percent of group sales within five years.
Deutz, whose shares were up 3.4 percent and among the biggest gainers in Frankfurt’s smallcap index, made sales of 1.26 billion euros in 2016. ($1 = 0.8480 euros) (Reporting by Tom Kaeckenhoff; Writing by Christoph Steitz; Editing by Douglas Busvine)