Agricultural machinery subsidies boost Q1 tractor sales - industry insider
Beijing. May 9. INTERFAX-CHINA - Tractor sales in China rose year-on-year in the first quarter (Q1) of 2011 due to increased state subsidies for agricultural machinery purchases, an industry insider told Interfax May 9.
Quarterly demand for tractors outstripped supply in northern China, the country's main wheat-growing region, according to Zhang Chaojun, deputy secretary-general of the China Association of Agricultural Machinery Manufacturers' (CAAMM) tractor branch.
China's central government has earmarked RMB 17.50 billion ($2.69 billion) for agricultural machinery subsidies this year, up RMB 2 billion ($307.90 million) from 2010.
Meanwhile, YTO Group Corp.'s sales of large-sized tractors surged 23 percent year-on-year in Q1 2011, a group spokesperson told Interfax May 9. The company's sales of medium-sized tractors rose 21 percent over the same period, compared to an industry average of 10 percent, said the spokesperson who requested anonymity.
YTO Group Corp. is one of China's largest agricultural machinery manufacturers, with an annual output of 61,000 large- and medium-sized tractors.
-LYB