Crawler tractors, also known as "track tractors" or "crawler tractors", refer to tractors with crawler tracks as their running gear. Crawler tractors are mainly used to tow and drive various supporting machines to complete agricultural operations, various earthwork operations, transportation operations and fixed operations. The running gear of a crawler tractor consists of a guide wheel, a follower wheel, a supporting wheel, a driving wheel and a crawler track. During operation, the driving wheel winds around the crawler track and moves in a circular motion, and the supporting wheel rolls forward or backward on the track of the crawler track.
In terms of policy, the Chinese government has always attached great importance to the development of agricultural mechanization and has introduced a series of policies to support the purchase and use of agricultural machinery. The implementation of the agricultural machinery purchase subsidy policy has effectively stimulated farmers' enthusiasm for purchasing agricultural machinery, and at the same time provided strong support for the promotion and application of agricultural machinery such as crawler tractors.
In terms of the industrial chain, the upstream is the supply link of raw materials and parts. The raw materials mainly include steel, non-ferrous metals, etc., which are used to manufacture the fuselage, crawler tracks and other parts of crawler tractors. The parts include engines, transmission parts, steering parts, electrical systems, etc. These parts are the key to the normal operation of crawler tractors; the midstream is mainly crawler tractor manufacturers; the downstream application areas include agriculture, forestry, industry, etc. Crawler tractors have the advantages of low pressure per unit area on the soil and good adhesion to the soil, and are particularly suitable for operations in moist and soft areas. Therefore, crawler tractors are mainly used for tillage, sowing, harvesting and other operations in the agricultural field. In 2022, the total sown area of crops in China will be 169,990.92 thousand hectares.
In recent years, with the advancement of my country's agricultural modernization, the level of agricultural mechanization has continued to improve, and the demand for agricultural machinery such as crawler tractors has continued to grow, especially in some agriculturally developed areas. Large-scale agricultural production requires more efficient mechanized operations, which provides a broad development space for the crawler tractor market. In 2022, the sales volume of crawler tractors in China was 4,057 units, and the sales market expanded three times in five years. In terms of sales, the trend of sales of crawler tractors in my country is consistent with the trend of sales, both reaching a new peak in 2022. With the advancement of the publicity of agricultural machinery purchase subsidies in various places, the sales volume of crawler tractors is expected to continue to increase.
Overall, the average unit price of crawler tractors in my country has continued to rise. Even in 2018 when sales declined, the average unit price rose by 7.19% over the previous year. By 2022, the average unit price of crawler tractors in my country was 105,700 yuan per unit, 37,000 yuan higher than in 2017, with a price increase of 53%. The increase in the average unit price is mainly related to the increase in production costs and the increase in subsidy standards.
The predecessor of First Tractor Co., Ltd., the First Tractor Manufacturing Plant, was founded in 1955. It is one of the 156 national key projects built during the "First Five-Year Plan" period in my country and a super large enterprise in China's agricultural machinery industry. YTO has a strong full set of production capabilities for forging, machining, assembly and testing, with nearly 100 production lines. The company's leading products include "Dongfanghong" series crawler tractors, wheeled tractors, diesel engines and other categories. In 2023, YTO's total operating income is 11.528 billion yuan.
