The leading manufacturers are providing a better price, and product bundling offer for specific seasons to boost sales and revenues in the Latin America tractor market.
Arizton’s recent market research report on the Latin America tractor market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by horsepower type (<40 HP, 40-100 HP, 100+ HP, and 4 WD), by wheel drive (2 WD and 4 WD), by countries (Brazil, Mexico, and Argentina), and offers detailed competitive analysis.
The Latin America tractor market is anticipated to generate volumes of approximately 87 thousand units by 2023, growing at a CAGR of more than 4% during 2018-2023. The integration of smart technology to access climatic conditions with the incorporation of GPS, telematics, and remote sensors will transform the Latin American market during the forecast period.
The top 3 drivers and trends augmenting the growth of the Latin America tractor market are discussed below:
Government Subsidies and Credit Support Systems
The government agencies and regulatory bodies are implementing various improved policies that support development and mechanization of agriculture farms and farmers. The introduction of these subsidies and benefits will encourage farmers to adopt smart tech to promote sustainable development and augment the growth of Latin America tractor market. The implementation of credit support systems and loan programs by the government will help increase investments in farms and agriculture machinery in the Latin American market. The Brazilian government announced to offer finances to the farmer by setting up a $58 billion loan program for the year 2018-2019. Such initiatives will encourage farmers and support them to increase their productivity and adopt the superior technology. The schemes are designed to encourage younger generation farmers to adopt farm mechanization that will result in ease of work and increased productivity in the Latin American market. Additionally, the Mexican government is offering small farmers the access to credit and subsidies to buy machinery and tractors that initiate efficient farming activities, increase in income, and higher food production. Such subsidies will support farmers and boost sales in the Latin America tractor market over the next few years.
Investments by International Manufacturers
The entry of international vendors such as Zetro, John Deere, and AGCO is expected to transform the Latin America market during the forecast period. Unfavorable factors such as unstable governments, fluctuating currencies, inflation, and closed markets are affecting the business of domestic manufacturers and hindering development in the Latin American market.
The entrance of international manufacturers will result in increased investments that will help introduce advanced agricultural equipment in the Latin American market.
These companies will launch high HP tractors to help farmers and innovate agriculture technologies to produce more yield on the same hectares that they have harvested before. These global players are attracting loyal consumers in Brazil and Argentina by offering products with more power, flexibility, and lower maintenance in the Latin American market. For instance, Mahindra, an Indian tractor and agriculture equipment manufacturer, has also invested in Latin America and has a sales presence in Argentina, Chile, Paraguay, Brazil, and Uruguay. International vendors will offer better quality products, spare parts, and tractors to plow and cultivate fields in the Latin America tractor market.
Growing Prospects of Precision Farming
The growing adoption of precision farming technologies across the region will revolutionize in the Latin America tractor market. Precision farming helps farmers to increase the productivity during fluctuating currency, ambiguous weather conditions, and declining an international trade of agriculture goods and sugar. Several companies are actively working to provide farmers with access to better and advanced technologies to improve productivity in the Latin American market. Countries such as Brazil, Argentina, Chile, and Uruguay are moving towards the adoption of digital agriculture, farming innovations, efficiency in production, and crop preservation during the forecast period. With the help of precision agriculture equipment that helps farmers to intelligently calculate the farm size and crop population to use correct amounts of water for irrigation and the plantation segments in Latin America. The introduction of the SmartSensing system helps reduce overuse of chemicals over the arable land as well as kills the weed growth effectively thereby, propelling the growth of the Latin America tractor market.
The leading vendors in the Latin America tractor market are Deere & Company, CNH Industrial, AGCO, and Kubota.
The complete overview of the latest market research report on tractor market in Latin America by Arizton is now available.
The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.
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