THE prospect of Kubota strengthening its claims for an increasing share of the farm tractor market came a step closer this week with the opening of a new tractor factory at Dunkirk in France.

The factory will make the new M7 series with models up to 180 hp thus enabling Kubota to compete in 80% of the UK tractor market. This combined with the acquisition in 2012 of Kverneland and Vicon will also provide Kubota with a comprehensive range of farm machinery in the future.

Which heightens the dilemma that the company has faced in recent years. For over 30 years, Kubota built its business on the compact tractor market in which it currently claims a +40% market share.

Many of those tractors have been successfully sold through agricultural dealers who wanted to exploit non-farming sales opportunities. By and large, the major tractor manufacturers are disinterested in the 50-60hp market. They have been content to let many of their dealers sell Kubota alongside their brands, but have become increasingly worried at Kubota’s upwards move into the +100hp market.

Now, with the growing presence of Kubota in their core market, will they be so relaxed in the future?

Speaking to Service Dealer this week, Kubota UK’s md Dave Roberts said, “We cannot influence what the big players in the tractor market will do, but we recognise the issue is now greater as we move up the horsepower range”.

To try and head off that threat, Kubota have recently introduced new trading terms and policies for dealers who hold the main tractor franchises. They are limiting them to only selling Kubota tractors up to 100 hp, and actively recruiting new dealers in their areas to sell the bigger models. To date around 40 ag dedicated dealers with 70 outlets have been appointed.

“As you can imagine, the change has not been without its teething problems,” says Dave Roberts.

Kubota’s clear challenge is to ensure that it retains its strong and hard won position in the compact tractor and turfcare market, but at the same time respond to the clear strategy outlined last year by the Kubota Board to become a significant world player in the tractor and machinery market, particularly in Europe.

The new French factory will make 3000 tractors in the first year, and is reported to be aiming at a 10% share within a few years.

“There are no plans to offer Kverneland or Vicon products in Kubota livery in the UK at present,” adds Dave Roberts, “but they are available in some European markets”. 

Consolidation or changes in the major tractor franchises have been conspicuously quiet in recent years. The question is whether Kubota can 'do a Bournemouth' and rise to the tractor Premiership - and what will be the knock-on effect?

Kubota have been through some of this before, with dealers who hold the Ransomes franchise and its Iseki brand.  The stakes are almost certainly higher in the ag tractor market, and we are surely in for some interesting times!

A longer version of this article will appear in the November/December issue of Service Dealer magazine - out 1 November