English 
Spanish 
6 min read
82 comments
Behind the scenes of Brazil's agricultural revolution, an Asian giant plans to transform the sector with a surprising offensive. The arrival of Yto's Chinese tractors promises to shake up the agricultural market, creating a fierce competition with already established companies. Did you know that Brazilian agriculture is about to undergo a significant change? Discover how this movement will impact producers and bring a new dynamic to the agricultural machinery market.
In 2023, Yto officially announced its entry into the Brazilian market. With an audacious proposal, the company plans to conquer 20% of the national tractor market in just a decade.
To achieve this objective, Yto entered into a strategic partnership with BDG Máquinas, a Brazilian company with more than 30 years of experience in the automotive sector.
According to the YouTube channel Turbo Formula, a Yto strategy is not limited to the simple import of tractors.
- In the R$55 range, the Mitsubishi ASX does 20 km/L with a range of 756 km and scares rivals in the SUV automotive market
- Fiat Fastback 2026: The coupe SUV gets a panoramic sunroof, electric seats and a new steering wheel
- Renault Stepway and Oroch 1.3 turbo are no longer manufactured in Brazil: End of an ERA for two icons of the automaker!
- Volkswagen leaves the automotive industry in shock! New electric car runs an impressive 1.000 km on a single charge and promises to beat its competitors
The company is creating a robust infrastructure that includes stores and distribution centers in strategic locations such as Ribeirão Preto, São Paulo, and Belo Horizonte, Minas Gerais.
This infrastructure is crucial to gaining the trust of rural producers, who depend on reliable machines to maintain their productivity.
According to the channel, “Yto presented its line of tractors at Agrishow”, one of the largest agricultural fairs in Brazil, highlighting models ranging from 24 to 240 horsepower.
These tractors are designed to meet the specific needs of small and medium-sized farmers, with features such as doors on both sides and European design, ideal for growing potatoes, cassava, coffee and sugar cane.
The question that remains is: will Yto be able to compete with the giants in the agricultural sector that already dominate the national market?
According to the Formula Turbo video, the agricultural tractor market in Brazil is extremely competitive. Global giants such as AGCO, responsible for the Massey Ferguson and Valtra brands, and the CNH group, which controls the Case and New Holland brands, already have a strong local presence.
“These companies will not give up space easily. John Deere, another colossus in the sector, and Mahindra, an Indian manufacturer that arrived in Brazil in 2012, also represent strong competition.”, says the channel.
For Yto, it will need to offer more than low prices. Quality, durability and robust technical support are crucial to gaining the trust of Brazilian farmers, which are known for their demands regarding the performance of agricultural machinery.
An advantage of the new competitor is the partnership with Fiat, signed in 1985. Thanks to this alliance, The transmission and gearbox systems of New Holland and Case tractors are the same as those used in new Chinese tractors.
This similarity could make it easier for Brazilian farmers to adapt to their new equipment., increasing confidence and reducing the learning curve.
Furthermore, the new manufacturer is betting on an aggressive pricing strategy, using the support of the Chinese government to offer financially competitive products.
This approach has already been successful in other sectors and could force competitors to reduce their prices, benefiting Brazilian rural producers.
Price and quality strategy: the formula for success?
To conquer the Brazilian market, Yto is betting on a powerful combination of competitive price and quality.
As a state-owned company, it has robust support from the Chinese government, which allows it to offer products at lower prices than competitors.
This pricing strategy is a powerful weapon, especially in a market where cost is a determining factor for many farmers. In addition to the price, The quality of the tractors is a central point.
The company states that its equipment is manufactured in the European style, with design and features that meet the specific needs of Brazilian farmers.
“For example, tractors have doors on both sides, facilitating access and operation, and are ideal for growing crops such as potatoes, cassava, coffee and sugar cane. This attention to detail shows the new manufacturer’s commitment to providing machines that really make a difference in the field”, highlights the channel.
Another crucial aspect is technical support. The creation of parts distribution centers and the partnership with BDG Máquinas ensure that farmers will have quick and efficient access to spare parts and technical assistance.
This is vital to minimize machine downtime and ensure farmers can maintain their productivity.
According to Formula Turbo, one also wonders how the new manufacturer plans to ensure that its tractors are seen as reliable and durable by Brazilian farmers.
The answer, according to the channel, lies in a series of initiatives, “from participation in agricultural fairs to practical demonstrations on farms, showing that tractors can face the specific challenges of Brazilian crops”.
See below a table with the main technical specifications of the Yto tractors that are arriving in Brazil:
| Model | Power (cv) | Motor | Transmission | Price in China (RMB) | Price in Brazil (R$) |
|---|---|---|---|---|---|
| Yto LF2204 | 220 | Cummins QSB6.7 | 16F+16R | 300,000 | 450,000 |
| Yto LF1204 | 120 | Yto LR6B5-23 | 12F+12R | 180,000 | 270,000 |
| Yto MF504 | 50 | Quanchai QC490 | 8F+4R | 70,000 | 105,000 |
| Yto X904 | 90 | LR4A3Z-22 | 12F+12R | 160,000 | 240,000 |
| Yto LX954 | 95 | Yto LR4B5-23 | 12F+4R | 165,000 | 247,500 |
Prices in Brazil reflect additional costs such as import taxes and local fees. Based on this information, it is clear that Yto is positioned to offer competitive products in both price and quality, creating additional pressure on established competitors.
The future of Yto in Brazil: lots of jobs
Yto's future in Brazil is promising, but also full of challenges. In May 2024, a significant step was taken with the signing of an agreement with the city council of Caruaru, Pernambuco, for the construction of its first factory in Brazil.
This initial investment of 150 million dollars marks the company's commitment to the Brazilian market and its long-term strategy to establish itself as a leader in the agricultural sector.
The new factory will have the capacity to produce 100 tractors per month, with plans to increase this capacity over time.
The project envisages the creation of 3.000 empregos direct, which will benefit the local economy and strengthen the company's presence in the country. This robust investment not only demonstrates Yto's confidence in the Brazilian market, but also its determination to offer competitive, high-quality products.
In addition to local production, the new manufacturer is focused on ensuring robust and efficient technical support.
The partnership with BDG Máquinas and the creation of parts distribution centers are an essential part of this strategy, ensuring that farmers have quick and easy access to spare parts and technical assistance.
This approach is critical to gaining farmers’ trust and ensuring that tractors become a reliable choice for Brazilian farms.
For experts, with government support and a well-defined strategy, Yto can be a catalyst for a positive transformation in the Brazilian agricultural sector.
In this sense, it is worth asking you, reader: Should the Brazilian government encourage the entry of more foreign companies to increase competition and lower prices, or could this harm national industries? Leave your opinion in the comments and participate in this important discussion for the future of agriculture in Brazil.
Predation is bad for everyone. Just ask the CBT, Sta Matilde and others. Be careful with these competitors!
Worrying. Although this is good for the consumer, it is terrible for the industries that are already established here. Especially for the only genuinely Brazilian industry that operates in this segment, Agrale and its subsidiaries. The Chinese have promised in the past and are moving forward with firm steps, they want to become the largest economy in the world and to achieve this they will spare no effort, even if they have to practice unfair competition and even take losses if necessary. Be careful…
The industries in the agricultural machinery segment already installed are not concerned with supplying small-scale machinery and implements for agriculture. Look at Asia, where every producer or most of them work on the property without needing employment if they have the minimum. The big ones have their market. Let new companies come and we will see transformation in the field in the short term.