The existing market with a barrier lake is in urgent need of finding a flood discharge outlet
The basic feature of the existing market is that the industry growth rate hovers around 5%, while there is a huge social share.
In the existing market, opportunities have shifted from the sale of new products to the value exploration of sold products. Only through extensive use can the value of sold products be fully exploited, and at the same time, the pace of renewal and upgrading can be accelerated. The number of small four-wheel tractors in use exceeds 20 million, and the number of large and medium-sized tractors (with over 25 horsepower) exceeds 5 million. Among them, 60% were formed within five years, are in new condition, but have been in use for a very short time.
In the existing market, the biggest problem for enterprises is to persuade users to willingly get rid of their old machines in advance. As the saying goes, "The old won't go, the new won't come." Currently, the subsidy policy is stable, and the old machines haven't been disposed of. Instead, new machines are constantly being purchased. What's worse, the upgrading and replacement of products are very fast, and the performance of new machines is better while their prices are continuously dropping.
It can be said that the domestic tractor stock market is currently a dammed lake, and there is an urgent need to solve the liquidity of second-hand tractors. Otherwise, the sales of new tractors will decline year by year. Since 2015, the sales of the tractor industry have been declining for three consecutive years.
2. Currently undergoing a complex "three-stage superposition"
