Report on Large & Medium-sized Tractor in China

Large and medium-sized tractor mainly refers to that with over 20 horsepower or 14.7 kilowatts, while large tractor should be of over 50 horsepower. In recent years, the output of large and medium-sized tractors has increased by leaps and bounds. The output volume in the first three quarters of 2004 overtook that in 2003, while that in October 2004 hit the record high, experiencing a month-on-month increase of 193.39%.

However, among the 23 manufacturers of large and medium-sized tractors, most are of small size. The whole industry is featured by high concentration. The TOP10 of the first three quarters in 2004 take up 96.68% in manufacturing, up by 0.69%, while the manufacturing concentration of TOP3 is up by 5.33%.

The demands for wheel tractors of over 70 horsepower have increased by 70% in January-May, 2005, while the booming sales of tractors of over 80 horsepower has also stimulated the number of participants in the market.

The major market of large and medium-sized tractors used to be in Northeast, Northwest, Northern China and Eastern China before 2004. Its market size in central and southern China is small due to its limited application in agriculture. However, this minor market has witnessed remarkable increase since 2004.