Abstract:After 2018, the national tractor output still maintained a downward trend. In 2023, the national tractor output will be 551,500 units, a slight decrease of 3% from 2022. In 2023, the output of large tractors in mainland China will be 109,300 units, the output of medium-sized tractors will be 273,200 units, and the output of small tractors will be 169,000 units.
1. Definitions and Classification
Tractor refers to a self-propelled power machine used to pull and drive operating machinery to complete various mobile operations, and can also be used as a fixed operating power. It can be divided into agricultural, forestry, industrial and other tractors according to its function and use; it can be divided into wheeled, crawler, boat-shaped tractor and self-propelled chassis tractor according to the type of structure; it can be divided into small tractors, medium-sized tractors and large tractors according to the power size.
Second, the business model
1. Procurement mode
At present, tractor manufacturing enterprises follow the principle of "sales to production, on-demand procurement", by the production department and the workshop organization to report the procurement plan, after the approval of the competent leadership, the use of inquiry, through the comparison of quality, price, service and other factors to select raw materials and accessories suppliers, suppliers according to the company's order to submit goods, experience after receiving qualified warehousing, and pay for the goods. Tractor manufacturers ensure the quality of parts by establishing stable and good cooperative relations with major suppliers.
2. Procurement mode
After the sales department receives the order, the production department will arrange the production plan according to the order time requirements to ensure that the production is completed before the delivery date. In the production process, tractor manufacturing enterprises comply with the production process specifications, and can only be put into storage after the production is completed after the quality department has passed the inspection. At the same time, due to the strong seasonality of agricultural production, in order to ensure timely supply in the peak sales season, the management of tractor manufacturing enterprises will make predictions based on sales experience and the market environment of the year, and there will be an appropriate amount of inventory for the best-selling models.
3. Sales model
Tractor manufacturing enterprises usually adopt the model of dealer sales, and at the same time publicize through exhibitions, the Internet, advertising, on-site demonstrations, etc., to expand the brand's popularity among users, so as to expand the market in a short period of time and establish the company's sales network at a lower cost. In this case, the establishment of a good dealer system has become an important task in the sales of tractor manufacturing enterprises.
3. Industry policy
1. Competent authorities and regulatory system
The administrative departments of the tractor industry are the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Agriculture and Rural Affairs. The National Development and Reform Commission is mainly responsible for the study of industry development plans, the formulation of industrial policies, and the guidance of industry restructuring, industrial system reform, technological progress and technological transformation. The Ministry of Industry and Information Technology is mainly responsible for formulating and implementing industry plans, industrial policies and standards, monitoring the daily operation of industrial industries, and promoting the development of major technical equipment and independent innovation. The Department of Agricultural Mechanization Management of the Ministry of Agriculture and Rural Affairs is mainly responsible for drafting agricultural mechanization development policies and plans, agricultural machinery operation specifications and technical standards, guiding the promotion and application of agricultural mechanization technology, organizing agricultural machinery safety supervision, organizing the investigation of specific types of agricultural machinery products in use, and guiding the safety of agricultural machinery operations.
2. Industry-related policies
As one of the traditional agricultural machinery categories, tractors are the machinery and equipment with the largest proportion and the most widely used agricultural machinery in mainland China. The national policy actively promotes the structural adjustment of the tractor industry. The "2021-2023 Agricultural Machinery Purchase Subsidy Implementation Guidance" proposes to pay attention to the guiding role of agricultural machinery purchase subsidy policy, gradually reduce the subsidy amount of wheeled tractors and other machinery and implements in the region with significantly too much ownership and relatively backward technology, and reduce the proportion of its subsidy to 15% and below by 2023, and withdraw some low-value machinery from the subsidy scope. The "Catalogue for the Guidance of Industrial Structure Adjustment (2024 Edition)" lists power shift tractors, continuously variable tractors, tractors for hilly and mountainous areas, paddy field tractors, hilly and mountainous multi-purpose power platforms, oil-electric hybrid tractors, new energy tractors and other tractor product types as encouraged categories.
Fourth, the development process
The sign of the start of China's tractor manufacturing industry should be the groundbreaking of the first tractor manufacturing plant in October 1955, and the first tractor in New China came out three years later, and successfully entered the mass production link in the following one year. In the 10 years from 1955 to 1965, China successively established more than 10 large and medium-sized tractor manufacturing enterprises such as Yituo, Changtuo, Tiantuo, and Anshan Tractor by introducing and copying tractor products from the former Soviet Union. In the early days of reform and opening up, China began to introduce foreign high-end agricultural machinery hardware equipment, technology and advanced management models. The tractor industry has also gradually opened up, and a large number of foreign capital and joint ventures, such as internationally renowned brands such as John Deere and Case, have begun to manufacture and sell tractors in China. Since the beginning of the 21st century, a large number of enterprises with independent intellectual property rights have emerged in China's tractor industry. Chinese tractor enterprises are also strengthening independent innovation and improvement in product quality, technological innovation, brand influence and talent training.
Fifth, industry barriers
1. Financial barriers
There are many types of equipment required for the production of tractor manufacturing enterprises, and the unit value is high, resulting in a large scale of investment in fixed assets; the product production process is complex, the product demand is seasonal, and the production cycle is long, resulting in a large amount of working capital occupation; and the development of new products requires a large amount of R&D capital investment. In addition, the tractor application area is broad and the use time is concentrated, in the peak season such as busy farming, the maintenance and other after-sales service requirements are higher, tractor manufacturing enterprises need to have a certain scale of after-sales service network to meet the needs of the majority of users for after-sales service, laying and maintaining the after-sales service network to tractor manufacturing enterprises put forward certain financial requirements. Therefore, the tractor industry is a capital-intensive industry, and there are high financial barriers in this industry.
2. Technical barriers
Tractor products, especially high-power tractor products, have complex structure, more varieties and high processing accuracy requirements, and complete the manufacturing of products need to have a staff team with high technical level, rich experience and high skills. New entrants need to solve problems such as product research and development, mastering multi-professional industrial technology, etc. Therefore, there are high technical barriers in this industry.
3. Industry access barriers
In China, tractor production requires the following three licenses: industrial product production license, motor vehicle production license and 3C certification certificate.
Industrial product production license. With the implementation of safety production requirements and environmental protection regulations, enterprises need to comply with laws and regulations in the production and processing process, and have certain technical capabilities, production equipment and site conditions, so they need to have industrial product production licenses. Tractors are mechanical products, and their production not only requires certain technical capabilities and production conditions, but also needs to strictly comply with relevant national standards, industry standards, and other laws and regulations on safety and environmental protection standards.
Motor vehicle production license. The motor vehicle production license is a license that the motor vehicle manufacturer must hold, and its main content is to meet certain requirements in terms of technology, management, quality, etc., and to be able to produce qualified motor vehicles, and the tractor is also a kind of motor vehicle, which must hold the relevant motor vehicle production license to be produced.
3C Certification. 3C certification is China's compulsory product certification, for the production, sales or import of products listed in the "China Compulsory Product Certification Catalogue" enterprises, must obtain 3C certification. Tractors are one of the mechanical products listed in the "China Compulsory Product Certification Catalogue", and the tractor products produced by them also need to meet the relevant 3C certification requirements.
4. Brand barriers
The domestic tractor industry is highly competitive, and the recognition of the brand by end users is an important factor for enterprises to stand out in the competition. The brand awareness and reputation of tractor enterprises are gradually formed in the process of marketing and end-user use, which requires a long period of market accumulation, and it is difficult for new entrants to obtain high market awareness and brand recognition in the short term. Therefore, there are high brand barriers in the tractor industry.
Sixth, the industrial chain
1. Analysis of the industry chain
The upstream of the tractor industry chain is the material component link, mainly steel, aluminum, copper and other raw materials and engine, gearbox and other parts; the midstream is the production and supply link, the main products include wheeled tractors, crawler tractors, boat-shaped tractors, etc.; the downstream is mainly used in agriculture, forestry, industry and other fields. Agricultural mechanization provides conditions for efficient agricultural production, and in the context of building modern agriculture, the demand for agricultural production will be transformed into the demand for agricultural machinery, which in turn promotes the development of agricultural machinery industry such as tractors.
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