Dealerships in North America
Kioti, LS, Mahindra and TYM are all expanding their dealer networks and vying for market share.
While major tractor manufacturers like John Deere, New Holland, AGCO and Kubota battle for global dominance and chase ever-elusive efficiency benchmarks, new faces are gaining a foothold on dealers’ lots throughout North America.
Kioti Tractor, LS Tractor, Mahindra USA and TYM USA have made significant investments in assembly operations and distribution centers in the U.S. in the past several years, and executives tell Rural Lifestyle Dealer that they don’t plan on leaving this lucrative market any time soon.
All four tractor makers are positioning themselves for an increase in market share as the rural lifestyle equipment market recovers from the Great Recession that began in 2007. According to Ag Equipment Intelligence’s “2011 Business Trends & Outlook” survey, released this fall, 88.2% of equipment dealers responding believe sales of compact tractors will be as good or better in 2011 as 2010, a 22.5% increase from the previous year’s outlook.
Kioti, LS, Mahindra and TYM also believe the market will come back, which means all four companies will be fighting for their piece of the proverbial pie next year.
Mahindra and Kioti, based in India and Korea, respectively, may seem to have an advantage after establishing themselves in the U.S. market more than a decade ago. But TYM and LS Tractor, both headquartered in Korea, are establishing their own dealer networks and bring their experiences as former suppliers to OEMs to the table.
Distribution is a key factor for these manufacturers, and dealers are the key to successful distributing.
Rural Lifestyle Dealer interviewed top executives from all four companies about their criteria and programs for dealers, market trends, expansion plans, industry consolidation and new products, as well as their outlook for the 2010-11 selling season.