Views: 12 Author: PEAK Publish Time: 2025-03-05 Origin: Original
Chinese agricultural machinery has gone through 2024 in agony, it is very difficult, and we know the ups and downs!
This kind of suffering is not only reflected in the sluggish market, but also in the serious competition and disorder within the industry. Behind this is the impact of factors such as subsidy overdraft in the market and fluctuations in grain prices, which have led to a decline in sales of various products.
The reason for the decline is obvious. On the one hand, the continuous decline in prices of grain and livestock products, coupled with a decrease in income from machine operators, has led to users holding onto their coins and observing, resulting in a decrease in their willingness to purchase. A boss in Jiangsu who has been engaged in agricultural machinery distribution for more than 30 years even told us that 70% of the grain growers he knows are losing money, which makes the growing Chinese agricultural machinery even worse. On the other hand, factors such as overdrawn market for National III products and concerns about National IV products still exist, resulting in insufficient willingness to purchase. This is another decline in the performance of Chinese agricultural machinery after a decline last year. In 2023, the operating revenue of 2199 large-scale enterprises in China's agricultural machinery industry was 242.8 billion yuan, a year-on-year decrease of 10%; The total profit decreased by 4.98% year-on-year; The production and sales of major agricultural machinery products have significantly decreased. The deputy general manager of a agricultural machinery enterprise in Weifang, Shandong told Very Agricultural Machinery that the industry is too competitive and 2024 is too difficult. Most enterprises are declining, and the proportion of decline is not small. 2025 is not optimistic either.
Where is the road in 2025? There are no sunset industries, only sunset enterprises. By fully utilizing the diversification of the Chinese agricultural machinery market, we can still have our own survival space, and the agricultural machinery industry remains a sunrise industry. We see that top brands are intensifying their transformation and upgrading efforts. China Yituo is accelerating the commercialization process of high-end products, promoting power shift and continuously variable transmission tractors to the fields, and setting the operating revenue for 2025 at 15 billion yuan. Weichai Lovol will launch the largest feeding capacity harvester in China in 2024, with a feeding rate of over 18 kilograms per second and the ability to harvest 50 acres of crops per hour. Zoomlion serves regions such as dry fields in the north, paddy fields in the south, and hilly areas, with products covering the entire production process of staple crops. Weichai has released a new hydraulic powertrain for its full range of low-speed harvesters, with a power range of 125-530ps, which can meet the harvesting power needs of the three major staple foods and economic crops by 2025. Yuchai can provide hybrid EVT solutions ranging from 50 to 600 horsepower, covering tractors, harvesters, silage machines, cotton pickers, sugarcane machines, and more.
On the road to modernization of Chinese agriculture, the important role of foreign brands cannot be ignored. They not only bring more advanced products, but also play an important role in promoting the progress of China's agricultural machinery industry, giving Chinese agricultural machinery the opportunity to "dance with wolves". The experiences and lessons learned by multinational companies such as John Deere, AGCO, Kubota, CNKI Netherlands, Deutzfal, CLAAS, etc. in product positioning, research and development processes, factory management, and development strategies, especially in the area of "going global", are worth studying.
Taking Kubota as an example, the company's spirit of "sharpening a sword in 10 years" is astonishing. In 2009, Kubota imported 1000 original tractors into the Chinese market, resulting in a loss of 30000 yuan per unit; Domestication began in 2010, with a sustained strategic loss of 10000 yuan per unit from 2010 to 2020, and annual sales of 3000 to 5000 units; In 2021, with the help of the National IV upgrade, the price increased by 30000 to 40000 yuan per unit, and now the profit per unit is about 20000 yuan. The annual sales volume is 3000 to 4000 units, ranking first in Shanghai and Zhejiang, and most of the sales in other paddy fields can enter the top 10. In addition, Kubota tractors have vigorously promoted localization, reportedly reaching over 90%. The strategic layout of "looking 10 years, thinking 3 years, and working 1 year" from strategic loss investment to profitability is worth learning. The world in 2024 may seem more turbulent - with Trump returning to the White House, the Ukrainian crisis and war dragging on, the Syrian regime breaking apart, and the Israeli Palestinian conflict continuing to spill over - but the overall trend of human civilization progress is unstoppable, and the trend of world integration and development will not change. Those who follow will prosper, those who go against will perish. This is incredibly certain! In this sense, we have reason to have unlimited aspirations for tomorrow! Full of confidence in adhering to reform and opening up, embracing globalization, and leveraging artificial intelligence! At the same time, remain vigilant against diseases, talent shortages, and poor management in large enterprises! Adhering to long-term principles, striving to produce high-quality products, and improving management level, the future of Chinese agricultural machinery will definitely be even better!
Crossing the cycle! Live well!
