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Meet The Cheap Tractor That Is Revolutionizing The Brazilian Agricultural Market With Technology From China
You won’t believe the news that is shaking the agricultural sector here in Brazil: the arrival of the cheap tractor from China! That’s right, the Asian giant is bringing its high-tech equipment at accessible prices to our farms. Let’s understand this story better and find out how it will impact our market.
Products “made in China” started with a somewhat dubious reputation, but today they dominate the world. From cell phones to electric cars, China has proven it knows how to make quality products at competitive prices. And now, the Chinese are eyeing the global agricultural sector. With the manufacturer YTO, Chinese tractors are gaining ground in several countries, and finally in 2023, they arrived in Brazil. But how did this company manage to gain so much space and what are its plans for our market?
The History of YTO: Cheap Tractor from China in Brazil
YTO, or The First Tractor Factory of China, was founded in 1955, shortly after the communist revolution led by Mao Zedong. At that time, China was a rural and backward country, and agricultural mechanization was an urgent necessity.
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With the help of the Soviet Union, YTO began manufacturing tractors that revolutionized Chinese agriculture. Today, the company is a giant in the sector, producing everything from crawler tractors to models with wheels, and exporting to over 100 countries.
Strategy to Conquer the Brazilian Market
YTO arrived in Brazil with ambitious plans: to capture 20% of the national tractor market in 10 years. To achieve this, it partnered with BDG Máquinas, which already operates in six Brazilian states, and is opening stores in Ribeirão Preto and Belo Horizonte. The idea is to start importing tractors directly from China, but the company is already planning to build a factory in Caruaru, Pernambuco, with an initial investment of 150 million dollars.
The Cheap Tractor and The Competition
To compete with giants like Massey Ferguson, John Deere, and New Holland, YTO bets on lower prices and the quality of its tractors, which feature Italian technology from Fiat. At the Agrishow agricultural fair in Ribeirão Preto, Brazilian farmers were able to closely see YTO tractors, which range from 24 to 240 horsepower, ideal for varied crops like potatoes, cassava, coffee, and sugarcane. For example, the Agricultural Tractor YTO YS404G for R$ 49,000.00.
With the factory in Caruaru, YTO plans to produce about 100 tractors per month and create 3,000 direct jobs. If it can replicate its success in Brazil as it did in China, it will be no surprise to see Chinese tractors dominating our farms. Now, the question remains whether Brazilian farmers will take a chance on this novelty. The affordable price, quality, and maintenance costs will be decisive for YTO’s success here.
Com certeza vai.
Quero ver os modelos mande pro meu email. Conversarmos!
Isso é muito bom para todos os agricultores do Brasil. Parabéns a CHINA!