Heavy machinery sales are expected to rise by 5% this year, driven by the growth of the construction sector, according to the latest estimate by Chinese manufacturer LiuGong Machinery.
Last year 4,321 machines were sold domestically.
The construction sector is expected to expand thanks to new factory and housing projects, as well as state infrastructure development, said Preechapon Vejruk, general manager of LiuGong Yontrakarn Co.
"We expect the construction sector to keep growing in line with the nation's GDP, driven by the economic recovery and more bustling tourism-related businesses," he said.
The construction and heavy machinery sectors will benefit from the state budget, scheduled to be allocated starting in the second quarter this year, said Mr Preechapon. Many businesses depend on the money authorities plan to spend on development projects.
The government's budget planning for fiscal 2024, which started on Oct 1 last year, was delayed because of the slow process forming a coalition government.
A manufacturer of a variety of heavy machines, including wheel loaders, excavators, bulldozers, truck cranes and sugar cane harvesters, LiuGong expects continued growth of its business in Thailand, he said.
The company is the market leader for wheel loader sales, commanding a 40% market share in Thailand.
"We are confident we can maintain our market share in this segment because of our competitive prices and after-sales services," said Mr Preechapon.
LiuGong expects its revenue to double to 1.5 billion baht this year, up from 780 million baht in 2023.
The company focuses on supplying heavy machines to serve infrastructure development projects, including road and bridge construction as well as dam and irrigation systems.
LiuGong also wants to increase sales of sugar cane harvesters in the near future.
Sugar cane farmers were instructed by the government not to use slash-and-burn techniques because it increases the amount of PM2.5 ultra-fine dust, which can damage people's lungs.
To cut fresh cane, farmers may need to buy harvesting machines because of the lack of labourers, who are mostly migrant workers, he said.
The Office of the Cane and Sugar Board said earlier it would help the government deal with the dust pollution by offering low-interest loans to farmers to facilitate the purchase of harvesting machines.