Doosan Bobcat to Enter Compact Tractor Market2018-07-25
- - Business expansion determined to develop future growth engine
- Over KRW 200 billion anticipated in sales within 5 years of a new product launch and sales synergy of existing product
On July 25, 2018 Doosan Bobcat Inc. announced that it signed a development service contract with Daedong Industrial Company, Ltd., for the development of compact tractors to strengthen its competitiveness in North America compact equipment market. Doosan Bobcat and Daedong Industrial will focus on product development to launch a new product within 2019.
Doosan Bobcat aims to expand its business portfolio from the compact construction equipment sector, where it has strong competitiveness, to an adjacent market. Doosan Bobcat is planning to reach new customers with a full line of compact tractor models while focusing on increasing market presence of its existing products, which have competitiveness in the construction sector including housing, in other business areas.
The North American compact tractor market stands at 160,000 units per year and has grown at an average annual growth rate of 5.4% over the past five years. By leveraging its brand value and dealer network, Doosan Bobcat aims to increase compact tractor market share in North America while expanding its business in other regions in the mid- to long-term. It also expects to increase the sales of existing products by expanding its sales channel.
"The compact tractor market is the largest segment in the global compact equipment industry. For Doosan Bobcat, it will be one of the most important sectors that will serve as a bridgehead to realize economies of scale”, said an official of Doosan Bobcat. “We will focus to expand our market share in the initial stage through aggressive marketing strategies and sales channel expansion in North America. We expect sales of KRW 200 billion per year in the North America compact tractor market within five years of launch and a bigger sales opportunity of existing products.