China Agricultural Tractor Machinery Market is projected to grow at a CAGR of 1.5% during the forecast period (2020-2025).
- Growing preference for farm mechanization and an increase in the number of government-funded policies are promoting market growth. China has introduced ‘Made in China 2025’ scheme which aims at focusing on producing 90% of its own agricultural equipment with high-end machines, like agricultural tractors, holding a one-third share of their segments by 2020. This, in turn, boosts indigenously produced tractors leading to the agricultural tractor market in the country.
- Deere & Company, CNH Industrial NV, AGCO Corporation and Shandong Wuzheng Group Co. Ltd is some of the major players who are operating in this market.
Key Market Trends
Growing Preference For Farm Mechanization
There is a growing need for farm mechanization in the region, as farmer's income has not been able to keep pace, such as to cater to the increasing cost of production, including labor wages. Farm mechanization, such as using tractors in agriculture, will reduce the wage-labor costs as less man-power is used for farming, besides enhancing manpower productivity. There is an urgent need for farm mechanization in crops such as rice, wheat, corn, potato, oilseed rape, cotton, and sugarcane to boost production. At present tractors of 25-100 HP is dominating the market owing to the low cost of purchase as compared to high-end tractors. Several regional regulatory bodies such as China Agricultural Industry Mechanization Association promotes farm mechanization in the country, by educating both co-operatives and individual farmers, about the benefits of using high-horsepower tractors in larger farm areas. Thus, the rapid increase in farm mechanization by farmers across the region is driving the sales of tractors, thereby promoting its market growth.
Favorable Government Policies is Supporting the Market Growth
China at present has a lack of effective supply of agricultural machinery, which includes tractors due to excess low-end production capacity. It cannot meet the full-scale agricultural diversification needs due to inadequate technologies supporting product growth. In order to boost the domestic production of farm machinery, the Chinese government framed a new agricultural machinery subsidy policy for the purchase of agricultural machinery, including tractors. The types of subsidy equipment cover 45 items in 23 categories, 11 categories, including farming and land preparation machinery, planting and fertilizing machinery, and field management machinery. For buyers of tractors above 60 HP and above can enjoy a subsidy of 150,000 Yuan in state subsidies.
Deere & Company, CNH Industrial NV, AGCO Corporation and Shandong Wuzheng Group Co. Ltd is some of the major players who are operating in this market. These companies are making strategic partnerships by partnering with domestic companies to expand their distribution network and launch new innovative tractors that cater to the needs of farmers in this region.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support