Export of Chinese Wheel-type Tractors

Facing to the international challenge ,many tractor enterprises in China put the aim at the international market and increase the implement force of "Going to the World" strategy .In the resent years the characteristics of export of Chinese tractors are as follows.

The export quantity is steadily increasing .In 2006 the export quantity of wheel-type tractors was 31500 ,the amount was $139 million,in the early 9 months of 2007 compared with the same time of 2006 the increase rate was 27.4% ,total 30300 and $142 million.

The export goal countries and regions are numerous and scatter .In the early half of 2007 the export countries and regions are 140 including some developed countries such as USA and UK ,and some developing countries and regions such as Southeast Asia and Africa.

Hot spot regions are continuously transformed ,and new markets continuously appear .USA and India was the main import countries of Chinese wheel-type tractors ,in recent years the export to Africa ,east Europe and our peripheral counties display increased tendency . Russia, Ukraine , Egypt , Pakistan , Iran , Brazil , Britain , Angola and Thailand have become the main export market of Chinese tractors.

The export enterprises are relatively concentrated .The statistics shown in Jan. to Sep. ,2007 the main export enterprises of large-middle size of tractors were Yancheng Yueda ,Foton Lovol ,YTO and Changzhou Dongfeng etc. and the main export enterprises of small four-wheel tractors were Shifeng ,Weifang Tractors and Yueda Yancheng etc.

According to the structure of export tractors we can see the main kind is 18.4-29.4kW (25-40hp) tractors that accounting for 37% of whole export tractors,small four-wheel tractors account for 24%,29.4-51.5kW (40-70hp) tractors ,20%,51.5kW (70hp) and above ,18% .but according to the grow rate the tractors with big power is the highest ,the tractors with middle or small power is higher than the small four-wheel tractors.

Of course the high grow rate is very good, but we shall know some self factors in Chinese tractor industry will restrict continuous grow of export.

The product performance is at the low end of market .Compared with the advanced design of developed countries our tractors are only at the stage of meeting basic functions, the position of products is at the low end of tractor industry .Compared with advanced enterprises in the world we have certain difference in convenience of driving ,variety of function and advancement of structure ,etc.
The marketing way is too simple .The quantity of enterprises dealing with tractor export business is hundreds and the quantity of manufacturers is tens ,but their marketing way is too simple which is unfavorable to continuous development of tractor industry in China.

Some export enterprises have not international service network, some dealers have not service ability so that the service can be done well.

The analysis and research to the characteristics of international users are insufficient, so the optimization of system based on the characteristics of international users is not done well.
If we want to occupy a place in the international market we must exert entire advantages of our tractor industry, improve independent innovation ability and consider actual situation of international market.
We shall strengthen the development of tractor industry, especially the development of leading enterprises .Our policy shall be to encourage and lead the tractor enterprises to appropriately concentrate to promote the leading enterprises to get faster development .We shall adopt the operation of capital market and the cooperation and reorganization between enterprises to increase self strength .Only if so ,we can treat the competition from international magnates.
We shall strengthen the construction of independent innovation ability .When our tractor enterprises go to the world we will face severe competition from international magnates .Weak R&D and part-component supply system will restrict the development of Chinese tractor industry .Therefore building a necessary coordination mechanism to achieve resource share and most possible economic size share shall be the effective way of improving our competitive force.

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