- While small to mid-sized machines still dominate the market, there is a growing trend in demand for larger equipment, especially among agribusinesses and project-based farms.
- Mechanisation and precision farming are gradually being adopted in the region, though progress is slower compared to other markets due to limited awareness and willingness to adopt new technology.
- CLAAS is focusing on providing high-performance machinery for large-scale and specialised farming, particularly in dairy and biomass applications such as silage production and biogas from sugarcane waste.
While the need for small- to mid-sized machines continues to dominate the market for now, structural changes across the region are gradually reshaping demand, said Kruewan Thong-om, marketing and country sales manager, CLAAS South East Asia.
“The majority of the market is still small- to medium-sized tractors, but if you take a look at the import statistics, the trend towards bigger tractors is also slightly growing,” Thong-om told AgNavigator at this year’s Agritechnica Asia in Bangkok, Thailand.
She elaborated that agribusinesses and project-based farming are driving a shift towards larger-scale operations.
At the same time, the pressure of an ageing agricultural workforce, combined with declining interest among younger generations, is forcing farmers to rely more on machinery to sustain operations.
“With the ageing population increasing in South East Asia, everyone is looking for some support. These machines can be the tools that support them to continue their agribusinesses. Mechanisation and precision farming are coming up in the region. It may be slow but it’s happening.”
Thong-om said CLAAS sees SEA aligning with global trends like digitalisation and precision ag, even though adoption has been lagging compared to other markets.
In fact, the key challenge was not the availability of technology, but the awareness and willingness to adopt it.
“Knowledge transfer or information sharing is what we need to develop in the region,” said Thong-om.
This is why Thong-om believes the growing popularity of drones in the region is a boon for the entire sector.
She said drones have helped farmers become more familiar with technology-driven approaches, lowering resistance to more advanced mechanisation and digitalisation.
“It’s a good development when everyone in the industry develops something that they specialise in, and then it can turn agriculture towards a smarter way. That’s our motto at CLAAS: Hard work. Smartly done.”
Opportunities in the region
The German company has maintained a regional office in Bangkok since 2012 and sees the SEA region as a long-term strategic market.
It has a long-standing presence in Asian markets such as China, Japan, and South Korea.
However, it still considers its business in SEA to be at the “beginning stage”, with many opportunities to tap into for growth.
While the region largely demands smaller machines, CLAAS is known for high-performance, larger-scale equipment.
As such, it has focused on applications where its machinery delivers clear value.
Thong-om highlighted the success the company has had in the region with the Jaguar forage harvester series by targeting large-scale and specialised farming segments.
Dairy farming remains a core focus, driven by the need for high-quality silage, a key input for dairy farming.
According to the company, the machine’s ability to produce consistent, high-quality silage directly translates into improved feed quality and higher milk yields, which are seen as a clear economic incentive.
Alongside forage harvesting, CLAAS is also targeting biomass applications, with its balers used to process sugarcane waste into biogas.
This dual role in both food and energy systems strengthens its position within the region.
