Tractor maker Zetor has finally acknowledged it can no longer manufacture and assemble its products competitively in the city of Brno, its long-standing home in the Czech Republic.

Dwindling sales volume in its core power market and increased cost pressures have forced the business to change tack; once current orders are completed by the remaining 30 or so assembly line workers, production will shift to India and later to China.

Meanwhile, the new 102-122hp 5-series replacement for the Proxima is being sourced from Turkish manufacturer Hattat.

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“Due to high energy prices, labour costs and, above all, material costs, we are no longer as competitive in the production of tractors as we need to be, and we have to change the way we operate,” explained Robert Harman, CEO of Zetor Tractors.

“This does not mean we are abandoning the up-to-130hp tractor segment. Like most of our competitors, we simply will no longer manufacture the tractors in Europe.”

Materials in India and China are 30-35% cheaper, he maintains, resulting in savings of at least 25-30% in the final price.

Key component suppliers for Zetor’s small and medium-sized tractors have already relocated production to Asia, including Carraro (front axles and transmissions), ZF (transmissions), Mita Oleodinamica (hydraulic implement hitch), Fritzmeier (cabs) and Deutz (engines).

“Importing individual components back to Europe for final assembly no longer makes economic sense,” Mr Harman added. Zetor’s headquarters, engineering, sales, service and parts operations will continue to be located in Brno.

Alongside its Zetor India operation – a joint venture with VST Tillers Tractors – the company is seeking a manufacturing partner in China and is preparing its own production plant in Asia to maintain independence in manufacturing.

The company said it produced 1,500 units in 2025, mostly thanks to growth in Africa, Latin America and Asia.

It has an ambitious goal of exporting 5,000 tractors a year from India within the next five years, and has a similar target for its planned operations in China.