Tractors are one of the indispensable key products in the field of agricultural mechanization. Although market demand has weakened, the demand for product upgrading and replacement has been outstanding.
The policy support direction for tractors under the national agricultural machinery purchase subsidy policy remains unchanged. Although each province has adjusted the subsidy amount for the horsepower range of tractor products in light of its own current situation and actual needs, the driving effect of the subsidy policy still exists.
Domestic tractor manufacturing still has shortcomings in key core technologies and high-end products. Particularly, there is a reliance on imports for high-power engines, hydraulic components, gearboxes, intelligent operating systems, and CVT used in high-horsepower and ultra-high-horsepower tractors, which requires further breakthroughs. The tractor industry still has a long way to go.
From the perspective of the current supply situation, the annual domestic production of tractors exceeds one million units, while the actual average annual market demand is between 300,000 and 400,000 units. It is an undeniable fact that supply exceeds demand. After years of market accumulation, the social ownership of tractors has exceeded 20 million units. Judging from the market operation characteristics in recent years, the main force of growth in the tractor market has shifted to the renewal of existing stock. Meanwhile, driven by policies and demand, the market structure adjustment will continue, and the regions with sales growth will shift to hilly and mountainous areas with relatively lower levels of mechanization.
