Motor coach of the class 854 aroses by modernization of motor coach class 853 or 852 (former ČSD M296.1 or M296.2). These old coaches were manufactured in number 35 and 25 pieces by wagon works Vagonka Tatra Studénka in years 1968 - 1971. These motor coaches are well known especially by working on international express train Vindobona from Vienna to Berlin.
Shortly after the splitting of Czechoslovakia management of Czech Railways (ČD) decided about modernization of these coaches. The main reason was high failure rate and obsolete concept of internal combustion engine. In february 2003 engine Caterpillar of the type 3412 E DI-TA was chosen for this modernization. The modenization was provided by company Pars DMN (today Pars nova) Šumperk in cooperation with company LOKEL. The first modernization was provided on the coach 853.030 (now 854.030) from depot Praha. To the new class 854 will be gradually modernized all motor coaches of the class 852/853. Coaches of the class 854 are now allocated in depots Praha-Vršovice, Trutnov and Hradec Králové.