‘Zetor’ is bringing an 80-year production era to a close: tractor assembly is being moved from the Czech Republic to Asia

One of Europe’s best-known tractor manufacturers – the Czech company “Zetor Tractors” – has taken a historic decision. After eight decades, tractor production in the country will cease, with the main production being relocated to Asia. The company attributes this to the declining competitiveness of European manufacturers and the significantly lower production costs in India and China.

This decision marks a significant shift in the European agricultural machinery industry. „Zetor“, whose history dates back to 1946, has long been regarded as one of the symbols of Czech industry, and its tractors are well known to Lithuanian farmers as well.

The company has announced that, going forward, it will rely on its existing manufacturing partnership in India, where the majority of “Zetor” tractors have already been assembled in recent years. At the same time, the company is seeking an additional manufacturing partner in China.

“Under current conditions, the production of small and medium-power tractors in Europe no longer makes economic sense,” – stated Robert Harman, Zetor’s Chief Operating Officer, in an official company announcement.

The main reason is costs

According to the manufacturer, the decision was driven by rapidly rising production costs in Europe. The company points out that energy prices in Europe remain significantly higher than in Asia, whilst raw materials and components in India and China cost around 30–35 per cent less.

Furthermore, a significant number of suppliers had already relocated their production from Europe to Asia, making the import of components into the Czech Republic less economically viable.

Although tractor assembly is being relocated, ‘Zetor’ is by no means leaving the Czech Republic entirely. The company’s head office will continue to operate here, from where the supply of spare parts, technical support, logistics, marketing and sales management will be organised.

However, the relocation of production will also have social consequences – the company has confirmed that 33 jobs at the factory will be lost.

“Zetor’s” decision is not an isolated case. In recent years, an increasing number of European industrial companies have been seeking ways to reduce production costs by relocating part of their production to Asia.

In the agricultural machinery sector, this is driven not only by energy prices, but also by global supply chains, the concentration of component manufacturing, and growing competition from Indian and Chinese manufacturers.

It is important for Lithuanian farmers to know that the brand itself is not withdrawing from the market. The company emphasises that customer service, the supply of spare parts and warranty servicing will remain unchanged, and that the production plans for 2026 will be implemented.