According to Russian media reports, the production project of Zoomlion tractors has entered the actual implementation stage as a result of a meeting between the leadership of Zoomlion and representatives of the Ministry of Industry of Kazakhstan. We plan to produce up to 700 machines annually. Tractor production will take place in Salani city, with the participation of Kazakhstan's special equipment manufacturer QazTehna. The Ministry of Industry of Kazakhstan believes that the project has prospects and is prepared to provide support during the project implementation process. Previously, Zoomlion had stated plans to localize the production of its equipment in Russia, with the aim of optimizing logistics and obtaining regional discounts and subsidies.
In addition, Russian agricultural websites have reported that the import dynamics of Chinese agricultural tractors will not further increase in the future, and may even slow down due to limited demand from agricultural producers. Alexander Altnov, Chairman of the Board of Directors of the Russian Agricultural Machinery Distributors Association, made this prediction during a webinar on the YugAgri Connect platform. I think the import dynamics will stagnate. This situation is because a market gap has been filled, and what we are facing next is a bottleneck in demand, "Altnov said. He added that market conditions and the increased recycling tax last year will continue to affect the demand for Chinese equipment in Russia. I don't think the import volume will increase sharply, on the contrary, it will slightly decrease with the complexity of the agricultural sector, "the expert concluded.
According to data from the Russian Special Equipment Association, the total market volume of agricultural tractors in Russia in 2023 is 36900 units, a year-on-year increase of 3%. Among them, the market share of Russian and Belarusian producers was 63%, a year-on-year decrease of 2%. According to the "Progress" alliance of industrialists, Chinese manufacturers account for 23% of the market for new wheeled agricultural tractors with over 40 horsepower, compared to only 8% in 2021.