The DD16 was a four-axle diesel-electric locomotive intended to replace steam locomotives on rural lines with low axle loads. They had a single diesel engine of the same type as the DD51, but de-rated from 1,000 to 800 hp. Due to the single engine, the cab was mounted in an off-center position. The first two prototypes were completed in 1971 in the JNR's own workshops at Nagano. 63 more were built by Kawasaki and Nippon Sharyō.

Between 1979 and 1983, four were rebuilt to self-propelled snowplows and designated DD16-300. Most of the unrebuilt locomotives were retired in the eighties, so that only ten were remaining when the Japanese railways were privatized in 1987. After the turn of the millennium, only a few were remaining in shunting service or as snowplow. Today one is being preserved in running condition.