Business News, 04/01/2018

Bang for Buck: Kharkiv Tractors Go to New Zealand

Kharkiv Tractor Plant has recently delivered its XTZ-242 tractors to New Zealand.

Plant’s general director Andriy Koval notes that a Ukrainian emigrant, who highly values the machines, produced by the enterprise, is promoting the Kharkiv tractors in New Zealand and several tractors have already been bought due to his efforts.

“The main advantage of XTZ tractor is its low cost – it’s about $ 60,000, comparing to $ 160,000 of western peers. At the same time, our tractors are reliable. They perform the same operations, can be easily maintained and repaired. It is very profitable for the foreign customers as ‘a penny saved is a penny earned!’” claims Koval.

Also, the transportation and delivery from Kharkiv to New Zealand is two times cheaper, about $ 15,000, than other international prototypes.

The only problem of dealing with foreign markets is providing the customers with components.  Countries, where the enterprise’s equipment is sold in large quantities, should be provided with spare parts by local businesses.


Andriy Koval specified that the plant is currently supplying its equipment to Africa, Latin America and South-East Asia. However, regional and local factors in every country should be considered before delivery. “For example, Pakistan can’t buy our machines as the farming plots are small, only about 20 hectares, therefore they need small tractors of 50 hp. The similar situation is in Turkey,” notes Koval.

Although the plant’s share in foreign markets is not significant at the moment, the managers note, it is only the beginning of gaining overseas buyers and the team is working hard to move forward.

Text: Olena Sokolynska