Increases in automobile prices and the unprecedented magnitude of movement in the second-hand market are also experienced in tractors. Although the production figures of the tractor, which is an indispensable of agricultural production, have increased compared to last year, farmers’ demand can hardly be met.
While the developments cause those who want to buy new tractors to wait for months, those who do not want to wait are pushing the second-hand. According to the information we received from industry officials, the increase in the need for food during the pandemic caused an explosion in tractor demand. The reason for the lack of tractors in dealers is the problem of parts supply and the disruption of production due to the pandemic.
Rally began in second hand in 2019…
According to industry representatives, it is stated that the second-hand tractor sales to Syria, Iraq, Sudan, Africa and Balkan countries have been effective in the increase of the prices in second hand tractors.
In a statement made to Habertürk from TürkTraktör, a domestic tractor manufacturer, input costs affected by exchange rates and inflation played a large part in the increase of tractor prices, but prices are still below the increases in costs.
Emphasizing that the tractor market decreased to historic lows in 2019, TürkTraktör officials shared the information that the second-hand tractor market has maintained its vitality starting from this period and that the movement in second-hand market continues to increase in parallel with the increasing sales of new tractors in 2020.
Sales over 40 thousand expected…
According to the Automotive Industrialists’ Association (OSD) data, 50,746 tractors were produced in 2016. While this number rose to 53,841 units in 2017, it broke a record, while in 2018, production decreased to 37,686. In 2019, tractor production fell to the lowest level in the last five years, reaching 23,899 units.
Number of manufactured tractors in the first 8 months of 2020 is at the level of 19 thousand 803 according to OSD data. January-August data reveal that this year tractor production may exceed last year.
Although there has been a decline in production from 2016 to 2019, it is striking that the situation is the opposite on the export side. According to OSD figures, while tractors were exported for 337.5 million dollars in 2016, 320.8 million dollars in 2017, 422.4 million dollars in 2018 and 478.1 million dollars in 2019.
Parts supply is the biggest problem…
We also received the opinions of other domestic tractor manufacturers about the developments. According to the information provided, the main problem of the sector is the supply of parts and stock.
As the demand for agricultural products increases, the farmers’ need for tractors also rises, while the problem of spare parts supply and pandemic measures in factories cause the production numbers to be limited.
In addition, the need for tractors has surged as most of the second-hand tractors in the market were exported to neighboring countries last year. Sector officials share the view that both the volatility in exchange rates and the high demand despite the lack of sufficient tractors will escalate prices even more.
Noting that those who want to own a new tractor have to wait for 3 months, the officials underlined that the high demand will continue in 2021.
By Yiğitcan Yıldız