The Tractor Industry has Entered the New Normal Status
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The Tractor Industry has Entered the New Normal Status

Views: 24     Author: Site Editor     Publish Time: 2015-12-16      Origin: Site

The Tractor Industry has Entered the New Normal Status

In the past few years, the tractor industry has been developing at a rapid rate. The sustained high-speed growth does not conform to the development laws of the market economy. Instead, it brings serious problems such as excessive production capacity, low efficiency, and unstable product quality. Because of this, the market has entered medium-term growth and conformed to the current industry practice. The new normal status requires two important features: First, structural adjustment; second, innovation. Without innovation and structural adjustment, achieving medium-speed growth under the new normal status is also unsustainable. In the past two years, the growth rate of the entire industry has gradually slowed down, the characteristics of structural adjustment have been outstanding. Competition has intensified, and the upgrading of demand has become the new normal for the development of the tractor market.

From the analysis of the demand structure of large and medium-sized tractors, there is a big difference in the market demand performance of each horsepower segment. From the regional market analysis, the regional demand of the large and medium-sized tractor market presents two prominent features: First, the concentration of market areas is increased, the market characteristics of large and medium-sized towed markets have obvious characteristics; second, the regional development is unbalanced. The reason for this phenomenon is firstly the substantial increase in the number of tractors in the market and the reduction in rigid demand. The demand for tractors has gradually shifted from rigid demand to market-driven upgrading. Since the beginning of the new century, large and medium-sized tractor markets have been operating at high levels for many years under the stimulation of related preferential agricultural policies. Second, land circulation leads to demand transformation. The rise of agricultural cooperatives, agricultural cooperatives, family farms, and large agricultural machinery, especially the acceleration of land circulation, has significantly increased the proportion of large customers represented by cooperatives, agricultural machinery large households, and planting large households, resulting in the further development of the tractor market in China. The demand structure has undergone major changes. The growth of large-scale tractors has relatively reduced the demand of the tractor market in terms of quantity.

Over the years, with the improvement of the level of agricultural mechanization, China's agricultural labor productivity has also been significantly improved. For the general direction of China's agricultural modernization, agricultural machinery and agricultural technology is also a necessary means to achieve the scale of agricultural operations. In the future, how to ensure that the tractor industry continues to maintain the new normal state and promote the full development of the tractor industry is still the main problem.


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