Yanmar upbeat on sales

Yanmar S.P. Co, a local manufacturer and distributor of Japanese farm machinery, is upbeat about sales this year because of the government’s stimulus measures, which will help raise farmers’ income.

The company expects sales growth of 15-30% to 6-7 billion baht this year, said president Koji Yamashita.

Yanmar also plans to increase its marketing budget to 550 million baht this year in a bid to stimulate local sales.

It posted sales of 5.2 billion baht last year, up by 5%, largely driven by exports which helped offset sluggish domestic sales.

Exports accounted for 30% of the company’s total sales last year, with 70% from domestic sales in which tractors made up 70%, engines 20% and other products the rest.

Executive general manager Tanat Kowatanawinta said once the stimulus measures become effective and money is injected into the farm sector, Yanmar expects the tractor market to improve in the second half of the year.

The tractor market was hit hard during 2013-15 by the weak economy, drought and farmers’ low purchasing power, exacerbated by delayed payments of the ricepledging scheme in 2014.

The overall tractor market, including combine harvesters, remains at 60,000-70,000 units a year. Tractors with 30-50 horsepower, the segment in which the company specialises, sold 31,500 units last year.

Mr Tanat expects sales of tractors with 30-50hp to grow to 33,000-35,000 units this year. He said Yanmar plans to gain a market share of 18% this year, up from 13% last year.

In a related development, Yanmar yesterday introduced the limited-edition X Manchester United EF514MU tractor priced 650,000 baht, which is made in Thailand. The company expects to sell 3,000 units this year.

“Yanmar will spend 200 million baht on the new model, focusing on modern farmers. We plan to introduce two to three new tractors this year,” Mr Yamashita said.

The company has a manufacturing plant in Lat Krabang, Bangkok, which started operations in 2011 with an annual capacity of 15,000 units.