Daedong hits “record-high” 8.7% market share in North American tractor market in 2024
Daedong hits “record-high” 8.7% market share in North American tractor market in 2024
- Achieves highest-ever market share despite a 13% drop in North American tractor market size in 2024
- Company now aims for a 10% market share in North America by 2025 with a new warehouse in the western US and launch of high-quality new products
- Daedong says it wants to “strengthen its position as a top-tier brand on the back of its North American business rebuilt in 2024”
Daedong (co-CEOs Kim Jun-Sik and Won Yu-Hyun), a leader and pioneer in future agriculture, announced on February 13 that it achieved an 8.7% market share (M/S) in the North American tractor market for sub-100 horsepower tractors in 2024[i].
A market share of 8.7% in North America is a 0.5 percentage point increase from 2023, which is particularly significant given that the overall size of the North American tractor market decreased by 13% compared to 2023. The company explained that its growth feels especially meaningful as it is the largest M/S achieved by Daedong since establishing its North American subsidiary in 1993, and it demonstrates that the company is gaining a bigger foothold in the North American market.
As for the drivers behind its larger M/S in North America's agricultural machinery market, Daedong points to stronger strategic sales promotions and added financing opportunities for customers. Daedong implemented aggressive sales programs such as special offers on long-term inventory and season-specific promotions. Thanks to these efforts, the company’s M/S exceeded 9% in August last year, and reached an annual high of 11.59% in November. Additionally, Daedong eased the financial burden on North American consumers by expanding its financial service programs with extended interest-free installment periods and lower interest rates. Furthermore, to secure more M/S in the mid-size tractor market, the company launched the new RX40 tractor with 60~70 horsepower, reinforcing its lineup and giving customers more options to choose from.
Building on its growth in 2024, Daedong wants to secure a 10% M/S in North America this year. To this end, the company plans to expand its North American business, which was previously centered on the East, to the entire country by opening a new warehouse in Tumwater, Washington, and actively targeting the Western region. The Western warehouse, scheduled for opening in April, is 29,421m2 (8,900 pyeong) in size, capable of storing 3,200 tractors, and equipped with facilities to assemble 2,000 attachments annually. This new warehouse is expected to serve as Daedong's base for targeting the western regions of North America.
Accordingly, Daedong is dividing North America into five zones, including four regions in the United States and Canada, and implementing differentiated strategies for each zone. The company has independently analyzed the main crop varieties grown in each region and the tractor lines in high demand. For example, the Midwest is the largest producer of corn and wheat, with a high demand for medium to large tractors, whereas the East prefers small to medium-sized tractors for various fruit farming. Based on these statistics, Daedong plans to expand its M/S with promotional offers tailored to each region. The company also aims to grow the market by finding new dealers in areas where there are currently no dealers, and reinforce its sales channels by developing existing dealers.
Meanwhile, Daedong is looking to accelerate its launch of new small and medium to large tractor products in the first half of the year. One new product in the 20 horsepower CS series, which is the first in its class to apply a cabin, is equipped with various user features such as air conditioning, a display audio, and a rear-view camera. The new model in the 20~40 horsepower CK series comes with significantly upgraded value thanks to new specifications and premium interior materials. With these two new products, Daedong plans to bolster its small tractor lineup while solidifying the dominant position KIOTI enjoys in the North American market for sub-60 horsepower tractors. In addition to its small and medium tractors, the company wants to revitalize its large tractor business by launching the 130~140 horsepower HX Premium model, which delivers marked improvements to work performance and user convenience with features such as a 12.3-inch monitor, cab suspension system, ventilated seats, and easy stop.
Daedong has plans for other new businesses as well. First, it plans to install telematics (TMS) devices in all tractor models sold in North America this year. Daedong launched the “KIOTI Connect” app linked to TMS devices in North America last November, and it wants to introduce differentiated services this year, including an advance warning system for consumable replacement cycles, a parts ordering function, and advanced LLM services within the app. The company also plans to develop new local partners for attachments, and thereby provide comprehensive tractor and implement solutions with a complete and diverse lineup tailored to customer needs.
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[i] Daedong determines its monthly M/S based on the total tractor sales data provided by the Association of Equipment Manufacturers (AEM), a US association of construction, agricultural, and industrial equipment manufacturers. The company calculates its M/S by adding Daedong's sales to the total industry sales and market size data announced by AEM as the population.