Market Trends of Turkey Agricultural Tractor Industry
This section covers the major market trends shaping the Turkey Agricultural Tractor Market according to our research experts:
Significant Domestic Manufacturing is Contributing to the Market Growth
- Turkey has a sizeable domestic production base for tractors. Only a few major market players are engaged in the production of tractors. Eight manufacturing plants supply the bulk of the tractors for domestic markets and exports.
- The domestic market for tractors has been steadily increasing on account of the increased value generated by the country's agricultural businesses. The factors that have contributed to a favorable economic scenario for investments in production include the availability of a cost-competitive and skilled labor force, competitive electricity and fuel prices, and a beneficial tax regulatory structure for the industry.
- The Turkish economy experienced a significant slowdown in the second half of FY 2019 due to both currency tensions in August 2018 and the restrictive monetary policy adopted to contain inflation. This resulted in a decline in tractor manufacturing.
- However, the Turkish government provides VAT exemption on imported and locally manufactured machinery (parts of tractors) for production. The favorable factors related to the investment scenario and a robust historical production base have helped maintain tractors' prices. This is expected to drive the Turkish agricultural tractor market's growth.
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50 - 75 HP Range Tractors Dominate the Market
- The Turkish government has the biggest support to let agricultural mechanization spread wide. The agricultural mechanization of Turkey, which foreign companies had dominated, has come to support Turkey's domestic economy.
- In the market, companies are focusing on strategies, such as expansions and product developments, not just for the domestic market but also for exports. The significant product developments occurred in the 50-75 HP power segment, the country's most popular engine power segment.
- In the market, companies are focusing on strategies, such as expansions and product developments, not just for the domestic market but also for exports. The significant product developments occurred in the 50-75 HP power segment, the country's most popular engine power segment. Deere & Co. and the Hattat Group of Turkey agreed to form a joint venture company to produce 50-90 hp tractors and distribute John Deere agricultural equipment throughout Turkey.
