South Korean tractor makers are accelerating collaborative R&D to maintain competitiveness in the U.S. market after new 15% tariffs were imposed on small and medium tractors. TYM has established a consortium that includes Maum AI, AIS, Durru Machinery, and Onnuri Machinery, while Daedong Robotics is working with Neuromeca, Newbility, and other AI specialists. These alliances aim to launch commercially viable autonomous tractors in both South Korea and North America by 2026.
Autonomous Tractor Demonstrations in Busan
In May 2025, a demonstration in Busan showcased a smart tractor with Level 4 autonomous driving capability. The prototype integrated precision seeding technology and operated in tandem with an AI-driven drone, highlighting how automation can handle row spacing and seed depth with minimal operator input. While detailed specifications of these tractors remain undisclosed, the demonstration indicates that the initial focus is on 100 hp-class machines, aligning with Korea’s core export segment.
Market Pressures in the U.S. Small Tractor Segment
The urgency behind this shift is rooted in weakening demand. According to the Association of Equipment Manufacturers (AEM), sales of tractors under 100 horsepower in the U.S. fell from 320,000 units in 2021 to just over 209,000 in 2024, with projections of around 190,000 units for 2025. South Korean brands, which rely on this segment for 70% of their sales, risk losing share if they cannot combine affordability with cutting-edge autonomy.
Technology Partnerships as a Survival Strategy
Major players like John Deere and Kubota command larger budgets for automation R&D. Korean firms, constrained by scale, are leveraging collective development to share costs, shorten time to market, and deliver systems that appeal to price-sensitive U.S. farmers. The key challenge is proving that autonomous tractors can deliver measurable efficiency gains without pricing themselves out of reach for small- and medium-sized farms.
About TYM
TYM (Tong Yang Moolsan) is South Korea’s second-largest tractor manufacturer, with a strong presence in the North American sub-100 hp market. Daedong, known globally under the KIOTI brand, is another major Korean player, offering compact tractors and implements tailored to hobby farmers, municipalities, and small operations. Both companies now view autonomy as central to their long-term competitiveness.
Source: chosun.com
