in power

When Kioti launched its SL and TL750 compact loaders a couple years ago, it took its time. That slow launch included a phased-in approach of distribution to dealers. And that was okay with some Kioti dealers I spoke with at the launch event in 2023. The manufacturer was not well known in the world of compact construction equipment, and many dealers needed time to build that reputation – as did Kioti. Plus, some dealers were not accustomed having products on the floor with retail prices above $70,000. For those dealers in farm country carrying the larger Kioti utility tractors, the SL and TL units were a welcome addition immediately.

With the company’s latest launch – the MX series mini excavators – Kioti dealers are ready, and the marketplace seems ready. The compact equipment market has been in expansion mode, product wise, for a few years now. And when manufacturers expand product lines they pour in advertising and marketing dollars.

I wrote about the mini market last fall for OPE+, and the momentum I mentioned then continues. To understand why Kioti is adding to this expansion, and how the manufacturer is doing it, I spoke recently with Joel Hicks, Kioti product development manager.

Highlights

“We have followed the same format that we did when we launched the Skid and the Track Loader originally.”

“A lot of companies in this business have been very successful. You have to pay them a little bit of respect…”

“We felt this product matched very well to our portfolio. Our ability to bring a reliable and durable product to the market quickly and to hit the ground running, it just made more sense for us to do it this way.”

“In the next 12 months, you’ll start to see some teasers. We want to give our dealers and our customers more opportunities to expand and branch out.”

Interview

In Power

I want to understand the launch of this MX series of excavators. Why are you doing it? How are you doing it? And how is the launch progressing to date? Let’s start with why Kioti wants to be in this market. 

Joel Hicks, product development manager

It’s a natural progression. We’ve been known throughout the years for being a compact and utility tractor company, for being in that 20 to 60 hp range. We have slowly added tractor products to expand our portfolio in the utility market, now getting up to 140 engine horsepower, which gets us up to around 120 PTO horsepower. It gives us good breadth and good reach into light ag, a lot of cattle, hay, horse type applications. 

Then you think about how compact track loaders or skid steers fit into that market with landscapers and large property owners, small estate owners, then you kind of have to start thinking about mini excavators were a natural progression. They fit in well with that market. Adding lawn and garden, utility vehicles, skid steers and track loader, the mini excavators are a natural progression. They fit well with that core customer. 

They pair well with the dealer network we have. You have technicians who are familiar with equipment in that size category. Dealers are familiar with equipment in that size category. They already have a customer base. We are giving customers more to choose from, giving the dealers more opportunities to generate sales and build their customer base. And it matures our presence in the market. 

In Power

I appreciate the thought that it pairs well with the dealer network you have and that you have technicians in there already who understand all that. And the customer base has probably evolved from the launch of the SL 750, right? How are dealers receiving these new excavators and did the launch of the SL 750s pave a path for you to launch these in dealerships?

Joel Hicks

We have followed the same format that we did when we launched the Skid and the Track Loader originally. We’ve already started to build out the dealer network that handles the compact construction equipment. We followed that same format of looking at the market closely to see where there are a lot of sales, and then also slowly ramping ourselves up. It takes a while when you introduce a new product to get it out into the field. And to get your presence established. So we’ve slowly been building that up. We added the first handful of dealers right around Equip Expo (2025). We started shipping products shortly after that to a handful of dealers. And then as we continued to ramp up with our inventory, we added the next phase of dealers and then shipped product out.

We have been bringing them on in phases, based on geography where there are opportunities to make a quick presence. And where there’s a volume or concentration of market share that’s obtainable. It’s actually worked out fairly well. 

With this methodical approach to it, we’re not over-extending ourselves. We’re not putting pressure on dealers to bring on a new product that takes a little while to familiarize themselves with. It’s given dealers an opportunity to have the time to touch it, feel it. And to start contacting customers and let them come look at it. We have seen retail pick up. We’ve been pleased with our slower approach to put it out into the field. 

In Power

And when did they first hit retail floors? 

Joel Hicks

We started putting them in field after Con Expo, in April. As we approach the end of the year, you can start to see that retail activity pick up, because a lot of people make these purchases for tax purposes. 

A lot of these sales, as far as the commercial side of with the landscapers and business owners, happen toward the end of the year. This has given us time to get the product out into the field and for everybody to become more familiar it. We are hopeful that we’ll see a good transition into the end of the year when additional retail is picking up. We’ve had the ability to keep our inventory levels where we feel like we need to be successful and so the dealers can replenish their stock.

Retail Acceptance?

In Power

Has anything surprised you about who’s buying these, or is it all just as you planned it?

Joel Hicks

We would like to say that it’s perfect and everything has gone according to plan, but nothing ever goes exactly like you want it to. Thus far the feedback has been extremely positive. The dealers have made good positive remarks about them. Our retail has shown that the customers have been buying them because they offer all the things they’re looking for as far as quality, durability, and a maintenance standpoint. We’re pleased so far with the way it’s going and hoping that we have a good end of the year.

In Power

What’s the breakdown, end of year versus beginning of season for sales? 

Joel Hicks

I’d have to go back and go back through the numbers again. It boils down to the consumer needs. They have taken on a new project or they’ve recognized a need for a piece of equipment, so then they figure out how to go get that equipment. When you look at it from the commercial aspect, it’s more tied to their business needs. The landscaper may want to add a machine because they see a need for it. It’s something they’re working into their business. A lot of times those are end of year sales. 

When it’s more towards the construction side, a lot of people bid jobs and when they’re awarded bids, then they’re looking for a piece of equipment to add if they didn’t have it in their portfolio. 

Kioti’s Competition?

In Power

When you sit around the conference room and you talk about the future of these products, who do you talk about? What competitor do you talk about most often?

Joel Hicks

That’s one that I don’t know that I want to give up. There are several we talk about quite a bit. A lot of companies in this business have been very successful. You have to pay them a little bit of respect, because they’ve done a good job of marketing their products and building their networks and their total customer base. We’re open to be able to follow in some other people’s footsteps, so to speak, and do the same thing. And I think we’ll be successful at it. We have got a good dealer network. We have a good customer base. 

In Power

You’ve taken an approach to deliver these excavators with specific features and few options. Buyers are not going to pick and have to price through a menu of options, same with dealers. From what I’m seeing online, that is being received well. Do you think it will influence other manufacturers? 

Joel Hicks

I hope it doesn’t influence other manufacturers. We talked to the dealers, we figured out what some of their pain points were in the market. For us, it made the most sense to do it that way because we’re a smaller organization. We’re starting out fresh into a new market. 

We worked with the dealers and we look at it from a customer vantage point, considering their needs when they leave with the machine day one. Putting a bucket on it is standard equipment. Putting an angle blade on it is standard equipment. Adding the thumb to it is standard equipment. All those are extremely high take rates. Our approach just made more sense. When you buy the machine, this is exactly how it comes. If you need to add a post hole digger or something of that nature, the machines already pre-plumbed for auxiliary hydraulics. 

From a dealer perspective, they don’t have to think about how they ordered a machine. They basically have a package that they sit on their lot. There are not a lot of kit options for them to shop. It saves time inside the dealership. 

When you come into the dealership and you get your price on machine X, it might look like a fairly low price. But then when you start adding on the things you need, it starts to add up. It can be confusing for the customer. We drifted away from that and said, ‘Let’s set the machine up the way that we feel like the customers are going to need it, majority of the time. It makes it very easy for the dealers. It makes it easier on us. And then we try to be extremely price competitive in the market. The dealers have been very happy with the way we’ve done it. And we feel like that approach will work well for us. We will stick with it and see what happens. 

In Power

You talk about light ag and horse farms and rancher work, even landscape contractors. You did not mention the construction market per se, but how big is that market for you and for your dealers?  

Joel Hicks

We’re probably less noticed in that field than we are in the farm or landscaper atmosphere. I think we pair really well with smaller contractors. When you start talking about larger general construction, a lot of people don’t even know we exist. The large construction companies, they’re buying 20, 30, 40 machines, bulldozers, articulating dump trucks, and they may not even know we exist. But the great thing about it is our dealers are in a lot of small communities where some of this work is taking place. And so when they drive by and say, we need to add another mini excavator because we’re picking up a little bit of that business. 

Overall, when you talk about large general construction, that’s mostly out of our portfolio. We have tailored ourselves more toward the hobbyists, the landscape or the small contractors, and farming applications. If a lot of it is being sold to smaller contractors, we probably stand a pretty good chance to be in on a lot of that, but if it’s a large construction company, they probably don’t even know we exist. We hope to change that eventually. 

A Manufacturing Partnership

In Power

I’m intrigued by partnerships like the one you created with LiuGong to produce these excavators. I understand those can be those can be challenging marketing communication messages. I don’t know much about that company, but the news is out there. Manufacturers establish these relationships for a variety of reasons. Anything you want to add to that?

Joel Hicks

We’re not necessarily advertising it. They operate their own business in their markets. We felt this product matched very well to our portfolio. Our ability to bring a reliable and durable product to the market quickly and to hit the ground running, it just made more sense for us to do it this way.

We’re doing our thing and they’re doing their thing with their products. You were talking about the construction side; they’re more well known in that market than we are. But we’re a lot more well known in our market than they are. It seems to pair fairly well right now, and we’re looking forward to growing it in the future. 

It’s not uncommon in the industry for a lot of the tractor manufacturers, a lot of the construction manufacturers. It happens quite a lot in the industry. It’s been a good opportunity for us to expand our portfolio. We’re not competitors on the sales floor, with the way our dealer network is set up versus theirs. I think it’s a good fit. 

In Power

Does equipment like this bring you new dealer inquiries? 

Joel Hicks

This opportunity has given us the ability to look more attractive to some dealers than we did in the past. The track loader side has been really strong for us and we continue to try to expand that. This gives us some opportunities in some new markets, markets that we have struggled a little bit to get into. 

In Power

What’s more popular sales wise, the 350 or the 570?

Joel Hicks

A lot of it boils down to what size machine the customer really needs. Because they’re still relatively new, we haven’t seen one model emerge over the other. As we go through the end of the year, we’ll get a better idea how the sales play out. When you look at the market as a whole, the 2- to 4-ton market and then the 4- to 6-ton market, they’re similar in market size.

In Power

What’s next? What other new market are you going to enter in a year or two?

Joel Hicks

We have a lot of things on the radar, but nothing that I can talk about in any detail at this moment. In the next 12 months, you’ll start to see some teasers. We want to give our dealers and our customers more opportunities to expand and branch out.