Farm truck maker Siam Kubota Corporation expects its revenue to increase by 8% year-on-year to 67 billion baht in 2025 despite stronger market competition.
The uptick is attributed to a projection of healthy crop prices and the government's stimulus measures, which should increase demand for farm machinery.
"We expect many farm products in Thailand and Southeast Asia to have strong prices and output will continue to increase," said Kazunori Tani, president of Siam Kubota.
Last year Siam Kubota racked up 62 billion baht in revenue, exceeding its target of 60 billion. Up to 60% of the earnings, or 39 billion baht, was generated from domestic sales, while the remainder came from exports.
Referring to 2025, Mr Tani said that while the weather, which greatly determines the amount of farm produce, can not easily be predicted, he believes this factor would not cause a significant impact on farming in Thailand where the government is promoting modern farming techniques to reduce costs and increase productivity.
The prices of agricultural products should remain stable at favourable levels, he said.
Siam Kubota is aware of imports of agricultural machinery from China and India into the Thai and Asean markets as their prices are cheaper than products manufactured by the company.
"We are closely monitoring the import of such products as tractors and combine harvesters which could lead to stronger competition," said Punna Wongtanasirikul, Siam Kubota's vice president for sales, marketing and services.
"Through our business strategy, product quality, brand royalty management and after-sales services, we are confident we can maintain our status as the top seller of farming machines."
The company is focusing more on selling drones for agricultural purposes which have high growth potential, said Waraporn Osathapan, Siam Kubota's senior executive vice-president.
At present, the company commands a 70% market share in the drone segment, an increase from 38% in the final quarter of 2024.
The value of the drone market, now standing at 28 billion baht, is expected to increase by 2-3% this year because this equipment can help farmers reduce costs and solve the labour shortage.
