Emerging markets strengthen global tractor demand

Worldwide tractor demand increases by 10% with India and China seeing largest market growth.

ACCORDING to Agrievolution Alliance estimates, the 2013 global market for agricultural tractors grew by 10% to 2,150,000 units. The high number of new tractors sold represents progress in increased mechanization on farms throughout various world regions.

India and China had the largest growth in tractor markets with both increasing their numbers by around 15%, to 619,000 and 445,000 units respectively. Both results meant new record levels for these countries, although growth rates in China slowed down compared to the enormous development over the past decade. The third country to reach a new peak in 2013 was Brazil, with more than 65,000 tractors.

Stronger trends also developed in North America, Turkey and Japan. The European market leveled out in the second half of the year, ending the total year figures with a slight increase.

Demand for both tractors and agricultural machines will remain comparably strong in 2014, due to the fact that the farming sector in general is expanding, aiming for higher yields and economies of scale. For most agricultural commodity products, the current price levels paid to farmers are on a satisfactory level, which forms the basis for new investment possibilities.

According to Agrievolution estimates, unit sales in 2014 might remain slightly below the high level reached in the past year, while global sales could remain flat at about $125 billion USD. Regional development will continue to vary depending on investment needs and market conditions including financing options for the purchase of new equipment. 

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish