MERCOSUR: Tractor Market 2024

Tractor Market Size in MERCOSUR

For the third consecutive year, the MERCOSUR tractor market recorded growth in sales value, which increased by 1.4% to $X in 2022. The market value increased at an average annual rate of +4.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market hit record highs in 2022 and is expected to retain growth in the near future.

Tractor Production in MERCOSUR

In value terms, tractor production contracted modestly to $X in 2022 estimated in export price. The total production indicated a prominent increase from 2012 to 2022: its value increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -0.3% against 2019 indices. The pace of growth appeared the most rapid in 2013 when the production volume increased by 18%. The level of production peaked at $X in 2019; afterwards, it flattened through to 2022.

Tractor Exports

Exports in MERCOSUR

In 2022, shipments abroad of tractors increased by 2.5% to X units, rising for the second consecutive year after two years of decline. Over the period under review, exports, however, continue to indicate a perceptible setback. The most prominent rate of growth was recorded in 2021 when exports increased by 49% against the previous year. Over the period under review, the exports hit record highs at X units in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

In value terms, tractor exports expanded remarkably to $X in 2022. Overall, exports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 with an increase of 56% against the previous year. The level of export peaked at $X in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

Exports by Country

Brazil (X units) represented roughly 97% of total exports in 2022.

Brazil was also the fastest-growing in terms of the tractors exports, with a CAGR of -2.8% from 2012 to 2022. Brazil (+2.9 p.p.) significantly strengthened its position in terms of the total exports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) also remains the largest tractor supplier in MERCOSUR.

In Brazil, tractor exports remained relatively stable over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per unit, rising by 7% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.7%. The pace of growth appeared the most rapid in 2013 an increase of 23% against the previous year. Over the period under review, the export prices hit record highs in 2022 and is expected to retain growth in the immediate term.

As there is only one major export destination, the average price level is determined by prices for Brazil.

From 2012 to 2022, the rate of growth in terms of prices for Brazil amounted to +3.0% per year.

Tractor Imports

Imports in MERCOSUR

In 2022, overseas purchases of tractors increased by 6.9% to X units, rising for the second year in a row after three years of decline. Over the period under review, imports, however, showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 with an increase of 56% against the previous year. Over the period under review, imports hit record highs at X units in 2012; however, from 2013 to 2022, imports failed to regain momentum.

In value terms, tractor imports expanded modestly to $X in 2022. In general, imports, however, continue to indicate a perceptible descent. The most prominent rate of growth was recorded in 2021 when imports increased by 67%. Over the period under review, imports reached the peak figure at $X in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Chile (X units) and Brazil (X units) were the main importers of tractors in MERCOSUR, together making up 43% of total imports. Argentina (X units) held a 13% share (based on physical terms) of total imports, which put it in second place, followed by Uruguay (11%), Peru (7.6%), Colombia (7.5%), Guyana (5.7%) and Paraguay (5.2%).

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Brazil (with a CAGR of +5.7%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest tractor importing markets in MERCOSUR were Chile ($X), Brazil ($X) and Argentina ($X), together comprising 59% of total imports. These countries were followed by Peru, Colombia, Paraguay, Uruguay and Guyana, which together accounted for a further 36%.

Paraguay, with a CAGR of +8.3%, recorded the highest rates of growth with regard to the value of imports, in terms of the main importing countries over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per unit, dropping by -3.9% against the previous year. Overall, the import price recorded a noticeable reduction. The pace of growth appeared the most rapid in 2021 when the import price increased by 7.2%. Over the period under review, import prices attained the peak figure at $X per unit in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Paraguay ($X per unit), while Guyana ($X per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Paraguay (+4.9%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform