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Discover the cheap tractor that is revolutionizing the Brazilian agricultural market with technology from China
You won't believe the news that is shaking the sector agriculture here in Brazil: the arrival of the cheap tractor from China! That's right, the Asian giant is bringing its high-tech, affordable equipment to our farms. Let’s better understand this story and discover how this will impact our market.
“Made in China” products started out with a somewhat dubious reputation, but today they dominate the world. From cell phones to electric cars, China has proven that 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 story of YTO: CHEAP tractor from China in Brazil
YTO, or China's First Tractor Factory, 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 need.
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With help from the Soviet Union, YTO began manufacturing tractors that revolutionized Chinese agriculture. Today the company is a giant in the sector, producing everything from tracked tractors to wheeled models, and exporting to more than 100 countries.
Strategy to conquer the Brazilian market
YTO arrived in Brazil with ambitious plans: to conquer 20% of the national tractor market in 10 years. To this end, 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 by 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 competition
To compete with giants such as Massey Ferguson, John Deere and New Holland, YTO is betting 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 see up close the YTO tractors, which range from 24 to 240 horsepower, ideal for varied crops such as potatoes, cassava, coffee and sugarcane. As an example, YTO YS404G Agricultural Tractor for R$49.000,00.
With the factory in Caruaru, YTO intends to produce around 100 tractors per month and generate 3.000 direct jobs. If it manages to replicate the success it had in China in Brazil, it will not be surprising to see Chinese tractors dominating our farms. Now, it remains to be seen whether Brazilian farmers will invest in this new development. The affordable price, quality and maintenance costs will be decisive for YTO's success here.
