The new Valtra S Series was the centre of attention at the recent press and dealer launch at the Suolahti factory in central Finland, but there was also time to tour the production area and quiz senior management about how the brand is faring in Europe and plans for the future.
While talking tractor numbers was off-limits, the company was keen to outline its increasing share of the European market. Generally, when a manufacturer discusses these, it refers to tractors above 50hp.
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Managing director Jari Rautjärvi is confident for the future and reckons that Valtra’s seven tractor ranges and its dealers will play a major role in helping the firm further grow its European business
“75hp is the minimum for us,” comments managing director Jari Rautjärvi, who adds that Valtra has no plans to slot in a new range from 50-75hp. For the first nine months of this year Valtra enjoyed a 7.1% share of the main markets in west, central and eastern Europe (6.8% same nine months in 2022).
Valtra continues to head the rankings in Finland, securing a 52% share of the market in the first nine months of 2023. Overall, Valtra is market leader in Scandinavia (and the Baltic countries) accounting for nearly one in four new tractors registered in Norway and a fifth share of the Swedish tractor market. In both countries, Valtra enjoyed second spot in the rankings in 2022.
Valtra also performed well in the main markets of Germany and France last year. In Germany, the 1,120 tractors registered was good for a record 5.6% share of the market above 80hp, and so far this year, Valtra has upped its share of the German market by another 1.0%. The situation in France was even more favourable in 2022 where Valtra registered around 1,930 new tractors for a 7.0% share (5.9% in 2021) of the 27,400-strong 80hp+ market.
10%+ market share in Europe by 2026
Keen to keep the momentum going, the plan now is to ramp up production at the Suolahti plant and increase Valtra’s European market share to in excess of 10% by 2026. The recently launched Q Series will play an important role, as will bringing S series production back to Finland.
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Mr Rautjärvi confirmed that the Q Series is the fastest growing power segment in western Europe and the S Series (pictured) market is also increasing.
The Valtra boss is confident the S6 will quickly enjoy a similar share of the market as the T and Q ranges. Mr Rautjärvi feels that the initial goal to secure a 5.0% share of the European market with the new S range as conservative. “Longer term I think the potential is there to grow this to nearer the 10% mark.”
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Precise volumes at the Finnish facility are off limits. What we can disclose is that the assembly line works 220 days a year and makes up to 45 tractors during a single daily shift. Our best guess is that 9,500 to 10,000 new tractors will be driven off the 230m production line this year.
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It is not just numbers that are off limits. Soo too are investments, but a tour of the Finnish production site clearly highlights that parent company Agco has invested heavily in Suolahti, not just in the Q and S Series but also preps to the assembly line to accommodate the heavier tractors.
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This includes the new and impressive 2,000m² paint shop. Built in 1969, the original paint shop was not large enough to accommodate the Q and S Series, and given the forecasted higher tractor volumes in the future, a new paint shop was essential.
The transmission plant is also undergoing significant expansion and modernisation. Currently manufacturing gearboxes used in the N and T Series tractors, it also delivers powershifts for the South American market and transmission components for other AGCO sites. In the future, the CVTs used in the Q and S Series will also be made in Finland.
Mr Rautjärvi is confident for the future and reckons that Valtra’s seven tractor ranges and its dealers will play a major role in helping the firm further grow its European business. “The demand for 120-140hp tractors remains high, but tractors continue to become more powerful,” he comments. “The Q Series is the fastest growing power segment in western Europe and the S Series market is also increasing.”
On the subject of dealers, Mr Rautjärvi strongly believes that smaller dealers can also be professional and provide excellent service to its customers, and by doing so count on their future with Valtra. “The Q and S Series will make us more attractive to both small and large dealers,” he commented.
Unlimited Studio
No visit to Suolahti is complete without a peek at the Unlimited Studio. Opened in 2013, the number of tractors put through it has exploded from 150 the first year to in excess of 4,000 this year. Described as Valtra’s secret weapon, it currently accounts for extra features and modification to over 40% of the tractors produced.
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Some 80% of Q Series tractors are driven into the Unlimited Studio before being delivered to customers (other ranges 35-45%). Seven standard colours are just not enough for some customers, and leather seats and steering wheels are popular options for the UK.
This number is expected to rise still further. Some 80% of Q Series tractors are driven into the Unlimited Studio, and it is envisaged that a similar share of the new S Series tractors will also visit the Studio now that they leave the same production line as the A, N, T and Q series models.
Valtra S returns to Suolahti with 420hp – Profi
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