The people's yearning and pursuit of a better life are unchangeable and unstoppable. In the jargon of our agricultural machinery industry, it is called "upgrading of demand".
By 2024, there will be 23 million large, medium and small tractors in China, among which 5.5 million are large and medium-sized tractors with over 25 horsepower. Since 2015, the domestic tractor industry has entered the stage of a saturated market. Currently, the social ownership of tractors is huge and the demand is approaching saturation, especially the basic functional demands have been fully met.
2. Subsidy policies are the trigger
The subsidy policy has a profound impact on the domestic agricultural machinery industry. Its significance is no less than that of market demand. It can even be said that to some extent, it is like a visible big hand, guiding the invisible hand of the market. So, most of the clues about manufacturers in the domestic agricultural machinery market and the market fluctuations can be traced back to the subsidy policies. The judgment that the power shift will be popular in 2025 is to a greater extent based on the understanding of the subsidy policies.
According to the "List of the Maximum Central Government Subsidies for General Agricultural Machinery in China from 2024 to 2026" released by the Ministry of Agriculture and Rural Affairs, the new three-year subsidy policy from 2024 to 2026 is beneficial to the tractor industry, with particular emphasis on support for power shift tractors, intelligent control tractors, crawler tractors, and special tractors for hilly and mountainous areas.
