Agricultural Machinery China: Good Aggregate Performance of Agricultural Machinery Industry

Author / Editor: China Industry News / Lisa Saller, Lisa Saller

Under the promotion of such policy of supporting agriculture and benefiting farmers, taken by the central government as the agricultural machinery purchase subsidy policy, Chinese agricultural machinery industry has been brilliant for a golden decade. However, the market performance in 2015 indicates that its high-speed growth will come to an end.

Agricultural machine in the exhibition
Agricultural machine in the exhibition
(Photo: agricultural machinery exhibition)

The statistical data of China Association of Agricultural Machinery Manufacturers indicates that the main business income of the 2,319 agricultural machinery enterprises will be above the scale of our country in 2015 (428.4 billion yuan). Although the income increases by 7.39% from previous year, the growth speed is the lowest during the recent ten years and the industrial investment intensity is gradually weakened.

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However, from the perspective of the overall machinery industries all over the world, the increase rate of 7.39% is higher than the increase rate 3.32% in the machinery industries and also higher than the increase rate 4.74% of automobile and the increase rate 3.25% of machine tools. The main business income of engineering machinery at the same period decreases by 8.08% and 3.31% for the internal combustion engine industry. Therefore, agricultural machinery industry is still an industry with good performance.

The President of the China Association of Agricultural Machinery Manufacturers, Chen Zhi, analyzes: the fixed asset investment of agricultural machinery industry from January to December in 2015 is 153.285 billion yuan ,which increases on year-on-year basis only by 13.36%; the increase rate of industry construction investment during the compression of surplus capacity and adjustment of industrial structure decreases year by year; investment of the industry is becoming more rational and cautious and the emphasis is put on the improvement of core manufacturing competitive capacity.

China Agricultural Machinery industry reported increasing turnover

Although the growth speed is the lowest during the recent ten years, the growth speed of agricultural machinery industry is still higher than that of the majority of machinery sub-industries and the increase rate of industry profit is 6% higher than that of the national machinery industries.

In 2015, the general income of the profit realized by agricultural machinery enterprises above the scale is 25.193 billion yuan which increases by 8.88% over the previous year; the profit increase rate is 1.5% higher than income increase rate which is much higher than that of the whole machinery industry; industry upgrading promoted by the agricultural machinery industry in the recent three years has achieved obvious effect.

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