HCE and HDI expect to grow together this year. The strategy of cross-selling will be the first step.
HCE and Hyundai Doosan Infracore will allow selling each companies’ ODM(Original Development Manufacturing) products to supplement their lineups. This means that some products are rebranded for sale. HCE has produced 17 models including 125-ton large excavators and 100-horsepower backhoe loaders. Hyundai Doosan Infracore has produced 15 models including 80-ton/100-ton excavators, and 3-ton/5-ton wheel loaders. A total of 32 models are cross-sold items for North America, Europe, and China.
This strategy will enhance the mutual lineups as well as meet customers’ requirements. In the past, it had been difficult and uneconomic to develop some products because of overlapping issues despite requests from users and dealers. However, cross-selling can deal with this problem. From now on, two companies can release new lineups to existing customers without development. And the companies can focus on developing their new strategic model by saving time and resources.
Cross-selling is expected to contribute to the sales increase of both companies, 360 billion won for HCE and 240 billion won for HDI, resulting in a total of 600 billion won by 2026. In addition to developing product portfolios, we are also planning to complete the integrated platform and make new models by 2025.