Steady Development of the Tractor Industry in China in 2010

Since the beginning of this year, with the increase in subsidies for agricultural machinery purchases in China, the annual subsidy funds have reached 15.5 billion yuan. According to the statistics of the Ministry of Agriculture, as of October 31, the central government's 15.5 billion yuan purchase subsidies for agricultural machinery were fully implemented. Combined with the data provided by the statistics meeting of the machinery industry tractor industry, the tractor market continues to develop steadily this year. The specific analysis has the following characteristics:

The production and sales of the tractor industry maintained a steady growth. From January to October this year, 24 enterprises in the tractor industry achieved a total industrial output value of 58.96 billion yuan, an increase of 9.4% year-on-year, and a sales value of 59.08 billion yuan, a year-on-year increase of 10.3%. The rate of production and sales exceeded 100%. From January to September, the operating income of the tractor industry was 57.88 billion yuan, a year-on-year increase of 6.4%. It should be noted that this is based on the growth of nearly 20% in 2009 and continued to maintain steady growth.

From the perspective of major tractor products, the output of large and medium-sized tractors was 280,096 units in the January-October period, an increase of 8.57% year-on-year, and continued to maintain steady growth after increasing by 30% in 2009; the output of hand-held tractors was 702,158 units, an increase of 19.1% year-on-year; The production volume of four-wheel tractors was 261,642 units, a year-on-year decrease of 7.65%.

This year, the two major characteristics of the market in China and China are very obvious:

First, this year's large and medium-sized tractor market has shown a trend of high Kaiping. According to industry statistics, in the first quarter, enterprises were optimistic about the sales of agricultural machinery market and started production at full capacity. In the first quarter, the output of the industry's medium-to-large tractors increased by as much as 55%. However, after April, enterprises began to digest stocks according to market conditions, and production growth also decreased month by month. At the end of October, the increase was just over 8%.

The second is the large increase in tractors with 90 horsepower and above. According to industry statistics, products below 90 hp produced 217,387 units this year, a slight drop from the same period of last year, while products with 90 hp and above produced 62,709 units, an increase of 61.5% over the same period of last year. The proportion of total medium and large toweds increased from 15.1% in the same period of last year. This year's 22.4%, it can be seen that this year's 90 horsepower and above products thrive.

The business efficiency improved slightly. As the overall trend of steel prices in 2010 was relatively stable, with an increase in sales, especially the increase in large and medium-sized tractors, the efficiency of the tractor industry has improved. According to the statistics of the tractor industry, the total profit realized from January to September was 2.36 billion yuan, a slight increase of 4.3% year-on-year; from the perspective of the enterprise, 18 of the 24 companies achieved profit growth or reduced losses. Six companies achieved a drop in profits or an increase in losses.

Although most of the profits of the industry are trending, the profit rate of the tractor industry is still low. According to statistics, under the premise of multiple positives and sales growth, the operating profit margin of the tractor industry from January to September was only 4.1%, compared with 4.2% in the same period of 2009, which was a slight decrease from the same period last year; from the agricultural machinery industry and central enterprises The comparison of the benefits of the automotive industry is also at a lower level. It should be noted that the tractor industry has been enjoying the national 13% VAT preferential policy, otherwise the profit rate of the tractor industry will also decline.

The capital was quickly repatriated. According to statistics from the industry, the receivables for the entire industry at the end of September were 7.2 billion yuan, an increase of 18.4% over the same period of last year. At the end of April, the figure was 8.31 billion yuan, an increase of 34.5% year-on-year. At the end of June, the figure was 7.45 billion yuan, an increase of 31.9% year-on-year. Both the total amount of funds receivable and the year-on-year growth rate showed that although subsidies for subsidies issued in the first half of this year reached as high as 15.5 billion yuan, under the coordination of government departments at all levels, the return of funds for subsidized agricultural machinery purchases is better, from the industry. The half-year interest expenditure situation is also lower than the same period last year.

Exports have come out of the bottom and they are showing signs of picking up. From the statistical data, the export value of the tractor industry from January to October this year was 3.43 billion yuan, a year-on-year increase of 17.1%. According to statistics, 12 of the 18 export-oriented enterprises in the industry have achieved growth, and only 6 have declined. From the perspective of the export of tractors, large and medium-sized tractors exported 16,823 sets, an increase of 21.7%; hand-held tractors exported 98,912 sets, an increase of 78.9%; and small-wheeled tractors exported 4,800 sets, an increase of 30.1% over the same period.

With the increase in grain prices in the fourth quarter, the increase in farmers’ income has increased the enthusiasm for investing in agricultural machinery, and with the initial allocation of funds, some provinces may release their plans in advance to operate. Therefore, tractor sales in the fourth quarter will be positive.

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