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Agricultural tractor market prospects in western China

2013-10-23

According to the survey findings , the western region's major agricultural tractor dealer schedules for various projects seemingly operating in good condition , but because most are in the preliminary stages of development , operation and management mechanism is not perfect, and because of the long-term dealers operate in a decentralized state , the professional market in the industry policy and government policy guidance role of market effect is not good to play , restricting the further development of the market . In addition, some non-store , no professional and technical personnel and non- financial strength of individual enterprises through affiliated business , resulting in a large number of substandard products into the agricultural farm tractors circulation , severe interference , the impact of the market's normal operating order .
Affected by the planned economy and the impact of local protectionism in the agricultural tractor market, production and distribution enterprises have some regular customers , especially small  tractors retail market products of state subsidies have been a few companies a monopoly , occupy a certain market share, market segmentation serious .

In addition to price risk , agricultural tractor market to sell agricultural products and other products , due to recent high prices of steel , resulting in the cost of steel accounted for a larger proportion of total cost of sales agricultural product prices risk exists . As more intense market competition Northwest farmers a higher price sensitivity of the product , brand loyalty is low , once the price volatility , which will be further intensification of competition in the market .

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