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Delays in Agricultural Equipment Delivery Worsen

Akihiro Komuro The increase in 2025 rice prices has provided Japanese farmers with more financial flexibility, leading to a surge in demand for upgrades to agricultural machinery. However, farmers are reporting longer wait times for machinery orders, sometimes up to a year. They are expressing concerns such as, “We can’t plan next season’s operations,” and “If delivery is delayed until next year, can we really count it as an expense for this year?”
Many small- and medium-sized farms had delayed replacing machinery due to prolonged low rice prices, opting instead to repair old equipment or purchase used machinery. The 2025 rice harvest, however, saw more farmers gain financial leeway, increasing the demand for replacing or purchasing new machinery.
While agricultural machinery manufacturers have been increasing production of high-efficiency models, such as smart farm equipment, targeting large-scale agricultural corporations, the supply-demand balance has shifted. This has created a situation in which supply cannot keep pace with the sudden surge in demand.
Source: JA.com
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2025 EV Motorcycle Promotion Project Continues
South Korea’s Ministry of Environment is continuing the “Electric Motorcycle Subsidy Program and Battery Swap Charging Facility Support Program,” which was launched in spring 2025. Its effects appear to be gradually emerging in the market.
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J-ENG Launches Marine Engine Fueled by Ammonia

Akihiro Komuro Japan Engine Corporation (J-ENG) has announced the completion of its first full-scale ammonia-fueled engine. The engine is due to be shipped to Japan Marine United (JMU)’s Ariake Works for installation on an ammonia-fueled ammonia carrier (AFMGC) which is currently under construction at the facility. The vessel is scheduled to enter service in November 2026.
Source: Kaiji Press Online
PSR Analysis: J-ENG’s first domestically produced ammonia fuel engine is a significant milestone as Japan strives to lead the way in marine decarbonization technology. Ammonia emits no CO₂ during combustion, making it a strong candidate for alternative fuels under the stricter IMO GHG regulations.
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South Korea Promotes EV Forklift Adoption
In South Korea, the government-led ‘Smart Safety Equipment Support Project’ is encouraging the use of electric forklifts and standardized safety equipment. According to the official notice, electric forklifts weighing less than 3 tons must be fitted with an overload prevention system, seat belts, warning devices, emergency stop buttons and anti-fall valves.
The subsidy program enables companies to introduce electric forklifts at a low cost, putting pressure on them to replace their diesel models with…
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U.S. Tariffs Up To 50% Impact South Korea Exports
SOUTH KOREA REPORT
The U.S. Department of Commerce has announced tariffs of up to 50% on 407 steel and aluminum derivative products from South Korea.
The department’s Bureau of Industry and Security said this measure would apply to hundreds of products, including wind turbines and their components, mobile cranes, bulldozers, railway vehicles, furniture, compressors and pumps.
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Kawasaki Launches Hybrid Hydrogen Engine
JAPAN REPORT
Kawasaki Heavy Industries has launched a generator engine that runs on a mixture of natural gas and hydrogen. It can operate using a hydrogen blend of up to 30% by volume relative to natural gas. This is the world’s first product of its kind to be launched.
The newly launched 'Hydrogen-Blended Gas Engine' is based on existing natural gas-fueled power generation engines. Due to the explosion risk posed by hydrogen, it is equipped with safety devices and mechanisms to remove residual hydrogen…
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Sharing of EV Battery Data Supported by METI

Akihiro Komuro The Ministry of Economy, Trade and Industry says it will support the development of an industry-wide system for sharing information on the degradation status of EV batteries. Toyota and Honda will provide battery-related data to used car dealers, insurance companies and others. The aim is to prevent the export of used EVs overseas and enable the domestic utilization of batteries containing critical minerals.
Currently, battery degradation is difficult to assess, resulting in low trade-in prices for used EVs in the domestic market. The fact that approximately 80% were exported overseas was a cause for concern.
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Proton Builds First EV Plant in Malaysia
Proton, Malaysia’s national car brand, opened its first EV factory in the state of Perak. The factory has an annual production capacity of 20,000 units, which can be expanded to 45,000.
Construction of the factory costs a total of 82 million ringgit (approximately $19.47M). Proton receives technical support from its major shareholder, Zhejiang Geely Holding Group of China. Previously, Proton imported EVs produced at Geely’s factory in Hangzhou, Zhejiang Province, China.
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South Korea, US Agree on 15% Tariffs
The South Korean government has reached an agreement with the United States regarding tariff negotiations. Mutual and automobile tariffs will be reduced to 15%, which is the same rate as those of Japan and the European Union (EU).
According to the Korea Trade and Investment Promotion Agency (KOTRA), automobiles are South Korea’s leading export to the United States. Exports to the United States account for over 50% of South Korea’s total automobile exports. The South Korean government prioritized reducing automobile tariffs and engaged in negotiations with the United States.
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CEMA Sees 3% Decline in FY2025 Shipments
CEMA (The Japan Construction Equipment Manufacturers Association) said it expects domestic shipments of construction equipment in fiscal 2025 to decline 3% YOY to US$ 19.65 billion (2.8488 trillion yen). This reflects declining capital investment sentiment due to rising interest rates and the impact of the Trump administration’s tariff policies.
Exports are also expected to decline by 3%, reaching US$ 13.60 billion (1.9717 trillion yen). Sales of hydraulic and mini excavators, the mainstay products, are expected to decline. Domestic sales are expected to decrease by 4%, down US$ 365.5million (52.9 billion yen) from the previous forecast, to US$ 6.05 billion USD (877.1 billion yen). Companies are expected to reduce their capital investment due to concerns about increased borrowing costs associated with rising interest rates.
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