Views: 1 Author: PEAK Publish Time: 2023-08-03 Origin: Qingxianlaonong
How is the tractor market this year? There have been multiple articles in the industry that have analyzed it, and most believe that the tractor market is relatively severe, and enterprises will inevitably experience a major reshuffle. Specifically, for each tractor enterprise, how many will be eliminated, which will encounter elimination, and which will go against the trend? This time, based on the published data of agricultural machinery purchase subsidies in various provinces and regions, we will briefly introduce and analyze the tractor market situation this year.
1、 Subsidies for tractors in various provinces and regions in 2023
1. Less than 1/5 of sales in 2023
According to the announcement data of agricultural machinery purchase subsidies, as of July 22, 2023, out of 38 agricultural machinery subsidy accounting provinces and regions in China, 35 provinces and regions can access the tractor subsidy announcement data. A total of 278495 tractors of various types were subsidized, of which 52818 were sold in 2023, accounting for 18.97% of the total subsidy amount.
This indicates that although China has already subsidized a large number of tractors this year, the sales of subsidized tractors in 2023 were less than 1/5, mostly from previous years. This is mainly due to the upgrading of emissions from country 3 to country 4. Before the final expiration date (most provinces and regions are May 31, 2023), country 3 tractors need to fully redeem subsidies. Therefore, new tractors purchased in 2023 cannot receive subsidies in a timely manner, and these new tractors have not yet been publicly announced. Even so, due to the high debt of "living in poverty and living in poverty", some provinces and regions have announced a three-month delay in the deadline for the final subsidy of National Third Class tractors, until August 31, 2023.
In the data of 23 provinces and regions with over 1000 publicly subsidized tractors, the average sales volume in 2023 accounted for 18.65%. There are 10 provinces and regions with subsidies accounting for less than 10%, 7 provinces and regions with subsidies accounting for 10% -50%, and 9 provinces and regions with subsidies accounting for more than 50%.
2. 12 provinces and regions with the most subsidies for tractors in 2023
From the distribution of the tractor market, the provinces and regions with the highest number of subsidized tractors (including previous years' sales) in 2023 are mainly distributed in the Northeast, Central Plains, and Northwest regions of China (Shandong Province is a major province in tractor production and sales in China, but unfortunately, the public data on agricultural machinery subsidies in that province cannot be consulted this time).
From the provinces and regions with the highest number of subsidies, the three northeastern provinces, Anhui, and Inner Mongolia have all subsidized over 20000 tractors. Hebei, Shaanxi, and Henan have over 10000 units.
The total number of subsidized tractors in the top 12 provinces and regions is 24434, accounting for 87.74% of the national total.
3. Top 10 Provinces with the Most Subsidized Tractor Sales in 2023
The 2023 subsidy sales volume is a data that everyone is more concerned about, as it should all be the sales volume of National Fourth Tractor. According to the subsidy data for agricultural machinery purchase, as of July 22, 2023, data on the subsidized sales of tractors in 35 provinces and regions of China in 2023 can be found, with a total of 52818 subsidized sales of tractors.
From the distribution of provinces and regions, Inner Mongolia had the highest number of subsidized tractors sold in 2023, reaching 8546 units, accounting for 16.18% of the national total; The sales volume of subsidies in Henan and Gansu both exceeded 5000 units, accounting for 10% or more of the total national total, respectively; In 2023, the subsidized sales volume of Tibet's emerging tractor market reached 4645 units, ranking fourth; The sales of other top 10 provinces and regions with subsidies have exceeded 2000 units.
In 2023, a total of 41288 subsidized tractors were sold in the top 10 provinces and regions, accounting for 78.17% of the total subsidized sales nationwide.
2、 In 2023, the tractor market will compete for dominance, and small and medium-sized enterprises will be eliminated
1. The tractor industry presents a win-win situation
According to the statistics of 90 tractor companies with subsidized sales in 2023, the subsidized sales show a polarization phenomenon. Weichai Lovol and China Yituo won the top and second place in 2023 subsidy sales with subsidies of 14900 units and 11500 units, respectively, while other companies failed to achieve the highest subsidy sales of 4000 units. Weichai Lovol and China Yituo have opened up a significant distance from other enterprises, and the tractor industry has presented a situation of dual dominance.
The key reason why Weichai Lovol and China Yituo can dominate the tractor market is that they have the advantage of engine manufacturing technology and are the first to master the manufacturing and maintenance technology of the fourth national engine. On the one hand, these two enterprises are already prepared and confident in producing and selling National IV tractors; On the other hand, although their tractors are more expensive, dealers and users feel that such a large brand can be bought with peace of mind and used with ease.
2. The number of tractor enterprises with subsidy data has significantly decreased in 2023
There are less than 90 production enterprises with tractor subsidy sales in 2023, a significant decrease from over 200 last year. The main reason for this is related to the upgrading of agricultural machinery emissions in the fourth country.
After the upgrading of agricultural machinery emissions in the fourth year of China, there have been significant changes in tractor technology, especially in engine technology. The increase in tractor manufacturing costs will inevitably drive up tractor sales prices. In addition, the sudden consumption of National Third Tractors before upgrading to National Fourth Tractors has led to a significant decrease in the initial sales of National Fourth Tractors with increased prices.
Many small and medium-sized tractor production enterprises have poor technical capabilities and are unable to upgrade their engine emission technology. Some enterprises also struggle with the maintenance of National IV tractors. Before mastering a certain level of technology, some tractor companies can only choose to temporarily withdraw from production and sales.
3. Most tractor companies face difficulties
From the perspective of tractor subsidy sales this year, except for Weichai Lovol and China Yituo, other companies have failed to achieve subsidy sales of 4000 units, with only 8 companies exceeding 1000 units and 23 companies exceeding 300 units. These enterprises have lower subsidized sales, mainly due to the increased costs after upgrading to the fourth tier, and the reduced subsidies have reduced profits, increasing the difficulty of enterprise operation.
Firstly, most small and medium-sized tractor enterprises do not have their own engines, which can be solved through outsourcing. However, due to the adoption of emission reduction technology, the purchase price of the fourth engine in China has increased to a certain extent, which has led to a significant increase in the cost of tractors.
Secondly, the difficulty of after-sales service technology has increased, and service costs have increased. If the Guosi tractor sold by the enterprise malfunctions during use, the after-sales service personnel of the production enterprise must have corresponding maintenance skills to cope with it. For example, most National IV tractors require the addition of urea during use, which not only increases operating costs but also makes maintenance more difficult. After a certain period of time, the homework needs to be done again. According to users, one regeneration consumes over 100 yuan of fuel, further increasing the usage cost.
Thirdly, in the past two years, the subsidy amount for tractors in various provinces and regions has decreased again and again, invisibly compressing the profit space of production enterprises.
In short, due to the impact of the upgrade from the third level to the fourth level, the third level tractors have been consumed in advance, resulting in an increase in the cost and maintenance costs of the fourth level tractors, as well as a decrease in subsidies. This has squeezed the profits of the fourth level tractors. In addition, due to factors such as manufacturing technology and after-sales service talents, many small and medium-sized tractor enterprises have adopted a wait-and-see attitude, resulting in more than 200 tractor production enterprises nationwide, Less than 90 companies appear in the public data of agricultural machinery purchase subsidies.
3、 Faced with difficulties, the only way is to "clench your fists"
In the complex market environment of 2023, if small and medium-sized tractor production enterprises want to win the initiative, they must do their homework in advance, take proactive and effective measures, maximize their own advantages, mobilize and concentrate resources, and form a joint force to overcome difficulties. At present, apart from Shuangxiong, there are two commendable measures for tractor production enterprises that have performed well.
1. Concentrate on producing one or two models of products
Although some enterprises are not large, in order to meet the needs of various users, the tractor product line is extended to cover almost all horsepower ranges of tractors. The result is that the product line is quite comprehensive, but the production is not very precise, and there are various quality issues. This is usually okay. In this year's market situation, if the product line is still stretched too long, it may be quite busy. I originally thought 'the east is not bright, the west is bright', but ended up 'tearing down the east wall to make up the west wall'.
If one or two models of tractor products are targeted according to the company's own situation, it may be different. From product manufacturing technology to after-sales service personnel and technical requirements, we will be much more relaxed. Although this may result in losing some product models in the market, it is beneficial to focus on key products and expand the market.
2. Concentrate on doing well in key regional markets
In terms of market layout, there is also a problem of concentration. Some enterprises may not have a large production and sales volume of tractors, but their sales areas are large. Wherever people buy tractors, they sell them there. Although the sales area is relatively large, the sales volume in various places is not high, resulting in scattered sales and services, invisibly increasing sales and service costs. If not done well, it will also affect the company and brand image.
