Siam Kubota Pivots to After-Sales Services Amid Slowdown

Siam Kubota has acknowledged that the agricultural machinery market in 2025 is slowing due to economic headwinds, with new machinery sales declining for the first time in years during the first half. However, after-sales service business is growing counter to the trend, reflecting farmers' tendency to extend equipment lifespan rather than purchase new machines.

Economic slowdown dampens machinery market but service business thrives in reverse

Waipoj Hamala, Head of Customer Solutions at Siam Kubota Corporation, revealed that the overall agricultural machinery market in 2025 has been hit by weak economic conditions and reduced purchasing power among farmers, resulting in the first drop in new machinery sales in the first half in years. Full-year sales are still expected to hover near 50,000 million baht, matching last year's performance.

However, despite the slowdown in new machinery sales, the after-sales service business continues to grow. Service work volume in the first half increased by approximately 6%, as farmers choose to repair and extend equipment life rather than invest in new purchases. Although average repair values have declined about 3% as customers opt for essential repairs only to manage cash flow during the incomplete economic recovery, this signals that after-sales service plays a vital role in customer retention, Waipoj noted.

"Economic conditions make farmers more cautious about spending. Many choose repairs over new purchases, increasing service work volume. Although repair values per case have dropped, it shows that after-sales service is critical to maintaining our customer base," he said.

Elevating after-sales service to build confidence throughout equipment life

Waipoj stated that although Thailand's agricultural sector retains growth potential—with the Agricultural Economics Office estimating first-quarter 2025 agricultural economic expansion at 2.4%—farmers still face risks from volatile weather, rising energy costs, and higher production expenses.

As a comprehensive agricultural solution provider, Siam Kubota has made after-sales service a key strategy alongside agricultural machinery development. The company aims to build customer relationships throughout the product's operational life under the concept "Purchase Once, Lifetime Confidence" or "Choose Kubota, Value That Never Ends."

The company has invested in personnel, technology, management systems, and dealer networks to reduce machinery downtime during critical planting and harvesting seasons—periods crucial to farmers' income.

77% of customers prioritize service over price

A company survey found that approximately 77% of farmers consider more than just product price; they prioritize long-term value, spare parts availability, service centers, and quick repair turnaround. Machinery downtime during the growing season can directly impact farmers' income.

Customers receiving fast service and timely problem resolution are more likely to return and recommend the brand to other farmers, resulting in Siam Kubota achieving a service satisfaction score of 978 out of 1,000—or 97.8%.

Leveraging AI and a database of over 820,000 machines to elevate proactive service

Waipoj stated that the company is accelerating the adoption of digital technology and AI to develop its service system by linking usage history, repair history, machine types, and maintenance schedules to build a customer database from all available contact channels. The company currently maintains a database of over 820,000 machines in its system, connected to the tracking platform.