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Following the experiences with the Keha class petrol railcars, in 1931 Sentetsu decided, in the interests of reducing fuel costs, to design and introduce a railcar powered by a diesel engine. Two Jiha1 (ジハ1) diesel railcars were therefore built in 1933 at the Gyeongseong Works.
The structure and interior of the diesel railcars was similar to the gasoline-powered Keha railcars, but they were more streamlined at both ends, and were powered by a GermanMotoren Werke Mannheim SS17S 110 hp (82 kW) diesel engine with cylinders of 127 mm (5.0 in) bore; the pistons were made of light alloy, and the cylinder head was cast iron. The fuel injector and the injection timing mechanism were almost identical to those used today. The engines were imported from Germany and were installed at Gyeongseong.
The diesel railcars, producing much less smoke than the gasoline-powered ones, were well received by the public and became quite popular. However, increasing oil shortages during the Pacific War led to their use being curtailed. Therefore, the engines were modified to use other fuels such as alcohol and benzene; experiments were conducted with wood gas, as well. However, these proved unsatisfactory, and the experiments ceased in 1944.