MTZ Plans Dealer Network Cut Amid Russia Sales Decline

The Minsk Tractor Plant (MTZ) is planning to reduce its dealer network in Russia due to declining sales. MTZ currently has 89 dealers and five of its own trading houses in Russia, which accounts for 55% of the plant's exports by value.

In the first half of this year, MTZ's revenue from exports to Russia fell by 2%. MTZ CEO Taras Murah noted that Russian farmers are under pressure from external factors, including a decline in grain exports and lower grain prices, which limits their ability to renew machinery.

Murah emphasized the strengths of MTZ products, such as reliability, ease of repair, and low cost of ownership due to convenient spare part availability. However, he acknowledged that MTZ may struggle to compete with foreign machinery on price.

Alexander Altynov, chairman of the board of the Association of Agricultural Machinery Dealers, stated that two-thirds of Russia's tractor fleet consists of MTZ products and described the Belarusian plant's dealer network as 'not very efficient'.