Engineering machinery giants have entered the agricultural market

Zoomlion finally came!

As early as 2008, Zhan Chunxin, chairman of Zoomlion, disclosed that Zoomlion intends to enter the field of agricultural machinery. However, over the past few years, it has not been seen until the June 18 of this year, Zhan Chunxin clearly stated at the shareholders’ meeting that in 3 to 5 years, Zoomlion will be working on existing leading products while The strategic layout of the agricultural machinery and other sectors is no longer a single “bet” construction machinery.

Coincidentally, the Jianghuai Power Company, the upstream enterprise of agricultural machinery, has also clearly defined its position in the field of agricultural machinery equipment in the near future. It intends to gradually strip coal, non-ferrous metal and other businesses, and increase the issuance of 1.56 billion yuan in targeted increments to produce agricultural machinery terminal products.

Chery Heavy Industries, which entered the agricultural machinery industry as early as two years ago, has now become one of the leading companies in agricultural machinery. As of the end of November 2012, Chery Heavy Industries has achieved nearly 26,000 sales of all types of agricultural machinery and achieved sales revenue of 2.08 billion yuan. Chery's "model" effect seems to make more off-businesses ready for the agricultural machinery industry. This year's Jiangsu International Agricultural Machinery Exhibition, Sany appeared in the figure, can not help but speculate on the current cold in the construction machinery, Sany Heavy Industry is also interested in a share of the agricultural machinery industry?

"Forever Sunrise Industry"

Experts once described the agricultural equipment industry as "it is not a profitable industry, but it is an industry with sustainable development." The development of agriculture is no longer possible in the era of manual labor, and farmers' production methods cannot return to the era of human and animal husbandry. Mechanization is an inevitable trend in agricultural development.

According to the statistical data of the Agricultural Machinery Industry Yearbook, the total output value of China's agricultural machinery industry has increased from 108.293 billion yuan in 2005 to 3,382.04 billion yuan in 2012, with an average annual growth rate of more than 20%. After 2012, the agricultural machinery industry achieved sales revenue of 330.997 billion yuan, a year-on-year increase of 18.96%. From January to May of this year, the agricultural machinery industry above designated size achieved sales revenue of 14.075 billion yuan, an increase of 17% year-on-year, and a profit of 88.2 billion yuan, a year-on-year increase. 19%.

The strong development momentum of the agricultural machinery industry is one of the best in the winter of equipment manufacturing. According to estimates by authoritative agencies, by 2015, the total agricultural machinery power will reach 1 billion kilowatts, and the agricultural machinery industry will reach more than 400 billion yuan. In particular, it is worth noting that the central government's continued growth in subsidies for the purchase of agricultural machinery has provided impetus for the continued increase in market demand.

Since 2004, after the central government allocated 70 million yuan in subsidies, from 2005 to 2012, the subsidy for the purchase of agricultural machinery has grown exponentially, from 300 million yuan in 2005 to 21.5 billion yuan last year, so far nine years total 74.47 billion yuan. According to industry insiders, in 2013, the first batch of subsidies for agricultural machinery purchases by the central government was set at 20 billion yuan, a net increase of 7 billion yuan over the first phase of 2012, reaching 13 billion yuan. It is estimated that the annual subsidy funds will reach 26 billion yuan, up About 30% increase.

According to the “12th Five-Year Plan” of the agricultural machinery industry, “the state will continue to implement the purchase subsidies policy for agricultural machinery, actively implement subsidies for agricultural machinery operations, increase support efforts, and strive to improve the policy system that promotes the development of agricultural mechanization.” and China Agricultural Machinery Industry Association Experts believe that the purchase subsidies for agricultural machinery will continue to be implemented after the 12th Five-Year Plan. In addition, agricultural machinery products also enjoy more tax benefits. “In our country, some agricultural machinery products also apply a preferential tax rate of 13% for value-added tax, which is 4 percentage points less than the value-added tax of 17% for general products. In addition, the preferential tax rebates for some agricultural machinery products also benefit many agricultural machinery manufacturing enterprises. "The expert said.

Both broad market prospects and loose policy environment, facing the tremendous potential for development of the agricultural machinery industry, Chery Heavy Industries began to rapidly expand “precision agriculture” as an important breakthrough; after JAC Power’s “Jiaodong” brand’s initial battle with Xiaojie, Began to force the agricultural industry to promote enterprise transformation; Zoomlion also announced in high profile that it will showcase its strength in the agricultural machinery industry...

With the entry of these latecomers in the field of Chinese agricultural machinery and equipment, this industry is also undergoing changes.