What Does The Significant Price Difference between Tractors with The Same Horsepower Indicate?

The public announcement data of agricultural machinery purchase subsidies shows that there is a significant difference in the prices of tractors with the same horsepower. How much does the difference really indicate? This time, let's talk about this issue.

1、 The price difference between tractors with the same horsepower is significant, some of which differ by several times

A tractor with the same horsepower should consume similar materials, but due to significant differences in material processing accuracy and processing methods, as well as differences in manufacturing technology and structural complexity, there will also be significant differences in the performance, quality, and reliability indicators of the final product. As a result, the prices of goods sold can vary greatly, even by a large margin. Next, let's take a look at how high the prices of different brands and models of tractors in different horsepower ranges are for agricultural machinery purchase subsidies.

1. Comparison of Prices for Several 1004 Tractors

Among the tractors sold by Kubota in Japan, the maximum horsepower is 954 tractors, and domestic enterprises rarely have this model of product, but many enterprises produce and sell 1004 tractors. Therefore, we compare the 954 model from Kubota in Japan with the 1004 model from domestic enterprises.

2. Comparison of selling prices of several 1404 tractors

We set the price of the highest priced John Deere 6E-1404P tractor at 100 points, while the other tractor brands scored the highest with the Aiko MF1004-B tractor at 89 points. There are two domestic brands of tractors with scores of over 40, and two with scores of 39.

3. Comparison of Prices for Several 1504 Tractors

We set the price of the highest priced Newfoundland T1504 tractor at 100 points, and the highest score for other tractor brands is the Deere 6E-1504-PL with a maximum score of 99 points. The score for domestic brand tractors is only three to four tenths.

4. Comparison of Prices for Several 2104 Tractors

We have set the highest selling price of the John Deere 6J-2104 tractor at 100 points, while other domestic brands have only scored a pitiful 20-30 points.

5. Comparison of prices for several 2204 tractors

We set the highest selling price of the Case PUMA2204 tractor at 100 points, while other domestic enterprise brands of 2204 tractors scored less than 40 points, with only 28 and 23 points less.

6. Comparison of Prices for Several 2404 Tractors

We set the highest selling price of the Case PUMA2404 tractor at 100 points, while other domestic brands of 2404 tractors scored the highest at only 43 points, while other brands only scored 29-39 points.

2、 What does the significant price difference of tractors with the same horsepower indicate?

What does the significant difference in price between tractors with the same horsepower indicate? The following personal opinions are for reference only.

1. Our country's strong tractor manufacturing capabilities

As we all know, our country has the world's largest manufacturing capacity, and many types of machinery and equipment can be directly priced at "cabbage prices" with the participation of China. The same goes for tractors, especially ordinary wheeled tractors. There are more than 200 domestic complete machine enterprises and countless component enterprises. If they can produce vigorously, their production capacity is very large, and their prices are naturally very low.

2. High end technology is not in our hands

Although China has a large tractor production capacity, there is no advantage in high-end tractor technology. Many technologies, such as power shift and automatic transmission technology, bus technology, steering and control technology, are still in the research and development stage, and most of these technologies are still some distance away from mature commercialization. Tractor products without high-end technology naturally cannot sell at a good price.

3. Our manufacturing is still very rough

Although we have many tractor manufacturing enterprises and have made great progress in manufacturing quality in recent years, there is still a significant gap compared to the advanced manufacturing technology of foreign tractors. Therefore, there is still a significant gap between domestic tractor products and foreign enterprises in terms of performance, product quality, and reliability. From the perspective of residual value after several years of use, domestically manufactured tractors have a significant discount in value once sold, and become worthless after a few years of use; And some foreign brand tractors, after being used for a few years, have residual value and even half price of new products. This indicates that there is still a lot of room for improvement in the materials and quality of tractors manufactured by domestic enterprises.

4. Farmers don't have the money to buy expensive tractors

The reason why tractors with poor quality but low or very low prices have a market is mainly because farmers do not have that much money. Everyone understands the principle that "you get what you pay for, you get what you pay for." Farmers who don't have that much money and want to buy and use tractors can only buy a tractor produced by a domestic enterprise. Some second and third tier brand tractors are cheaper and affordable, just make do with it. And many old users, who have been using domestic tractors for a long time, have developed skilled tractor repair skills. If the tractor encounters problems, they can repair them themselves and make do with it.

5. Quota subsidies encourage the production of low-priced tractors

Tractors are subsidized according to horsepower quotas, which means that regardless of the price, as long as the horsepower is the same, the subsidy amount for each tractor is the same. In this way, the subsidy ratio for high priced tractors is relatively low, while the subsidy ratio for low priced tractors is high. Taking the 2404 tractor as an example, the highest priced Kais PUMA2404 tractor was sold for 1.02 million yuan, with a subsidy of 67200 yuan in Heilongjiang, with a subsidy ratio of 6.59%; However, the price of the domestic enterprise TTS2404-1 tractor is only 295000 yuan, and a subsidy of 67200 yuan is also provided in Heilongjiang, with a subsidy ratio of up to 22.78%. In this way, low-quality and low-priced tractors are encouraged, while the subsidy ratio for high-quality and cost-effective tractors is lower.

6. Enhancing the value of tractors relies on new quality productivity

Nowadays, new quality productivity is being promoted, and it seems that new quality productivity refers to the high-end things of digitization and intelligence.

In my personal opinion, using the same amount of raw materials to manufacture tractors can improve the performance, quality, and reliability of tractors by improving processing technology, improving machining accuracy and assembly quality, and enhancing technological content. Ultimately, the value of tractors can be increased and they can be sold at a good price. The improvements in this process rely on new quality productivity.