A component for exposure to a combustion chamber of a diesel engine and/or exhaust gas, such as a cylinder liner or valve face, is provided. The component includes a thermal barrier coating applied to a body portion formed of steel. A layer of a metal bond material is first applied, followed by a gradient structure including a mixture of the metal bond material and a ceramic material, followed by a layer of the ceramic material. The ceramic material includes at least one of ceria, ceria stabilized zirconia, yttria stabilized zirconia, calcia stabilized zirconia, magnesia stabilized zirconia, and zirconia stabilized by another oxide. The thermal barrier coating is applied by thermal spray or HVOF. The thermal barrier coating has a porosity of 2% by vol. to 25% vol., a thickness of less than 1 mm, and a thermal conductivity of less than 1.00 W/m·K.