Daedong (Kioti Tractors) posts record-high sales at KRW 835.8 billion in the first half of the year

Daedong, the manufacturer behind the Kioti Tractor brand, has set a new precedent with unprecedented sales reaching KRW 835.8 billion in the first half of 2023, marking the highest semi-annual sales in its history. This surge, amounting to an 18.8% increase from the previous year, is attributed to strategic diversification of products, including the Kioti compact tractors, and broadening of market reach.

The expansion into European and Australian markets was particularly lucrative, with sales soaring by 54% and 74% in these regions. Daedong's focus on German-speaking countries through restructured European subsidiaries has been a smart move, leveraging Germany's direct sales framework to push the presence of Kioti tractors in the continent.

With a strategic pivot towards more robust agricultural machinery, Daedong has seen its exports of medium to large tractors, including the Kioti line, climb by 62%. The Kioti HX series, renowned for its horsepower range of 90-140, has become a flagship offering, reinforcing Daedong's position in the global compact tractor market and increasing their exports to constitute 7% of Daedong's total sales.

Domestically, Daedong's sales of agricultural equipment, including Kioti tractors, experienced a downturn. However, the company's consolidated sales figures showed resilience, albeit with a slight decline in operating profit due to upfront investments in smart farming and mobility, including forays into the golf cart and e-scooter markets.

In anticipation of future demand, Daedong is enhancing its Kioti tractor lineup with plans to launch a new premium mid-sized tractor model. The company's strategy in North America includes upscaling the assembly line for tractor attachments and accessories, aiming to provide a variety of assembly services through its network of Kioti dealers.

As Daedong invests in the future, it remains focused on its smart agricultural machinery segment, preparing to launch high-level unmanned Kioti tractors and combines with autonomous capabilities. Additionally, the success of its smart mobility business is evident from the doubled sales of golf carts in the first half of 2023 and its initiative to capture the e-scooter market. The Daedong-KIRO Robotics Center is at the forefront of these innovations, developing robots for both agricultural and general purposes, including a "following robot" designed to autonomously transport agricultural products, with Kioti tractors continuing to be a central part of Daedong's growth and innovation strategy.