Sunday, 16 August 2026
Czech tractor manufacturer Zetor Tractors is ending production in Brno after 80 years and transferring manufacturing to India, citing the high cost of producing tractors in Europe.
The company’s headquarters, research and development centre, spare-parts warehouse and distribution centre will remain in Brno. The closure of local production will affect 33 employees, Zetor said in a press release.
Since ending its own production of engines and gearboxes in 2024, Zetor has continued to assemble tractors in Brno using components held in stock. The company employed approximately 150 people in the city last year.
“Producing small and medium-sized tractors in Europe no longer makes economic sense under current conditions,” Zetor Tractors CEO Róbert Harman said.
He said the company had been one of the last manufacturers attempting to retain such production in Europe but could no longer remain sufficiently competitive because of high energy, labour and material costs.
“This does not mean that we are abandoning this category of tractors. Like all our competitors, we will simply no longer manufacture them in Europe,” Harman added.
Zetor said the main reason for the decision was the long-term increase in the prices of materials, particularly steel, plastics and aluminium, as well as rising energy costs.
According to the company, materials are approximately 30% to 35% cheaper in India and China. This can reduce the final cost of a tractor by at least 25% to 30%, creating a cost difference that European production cannot overcome.
Zetor has manufactured most of its tractors in India in partnership with VST since 2020 and is now seeking a similar partner in China. It is also preparing to open its own production facility in Asia.
The company aims to export approximately 5,000 tractors from India within five years and has set a similar target for China.
“Zetor is moving closer to suppliers of key components to improve efficiency and accelerate the expansion of its product range,” Harman said. “Brno will remain our centre because of its historical facilities, universities and young talent, which we expect will help us grow.”
The long-established manufacturer has faced financial difficulties over the past decade. Since 2018, it has reported a profit only once, in 2021. Its loss in 2024 reportedly ran into hundreds of millions of Czech crowns, although the company did not publish an exact figure. Its annual reports for 2024 and 2025 are not available in the Czech public register.
The Zetor brand originated as a division of the Zbrojovka engineering company in Brno. Its first three tractors were delivered to customers in March 1946.
The trademark was registered the same year, combining “Zet,” the name formerly used for Zbrojovka products, with the final letters of the word “tractor.” The company moved to its current Brno premises in the mid-1950s.
Following the collapse of communism and the loss of its traditional export markets, Zetor came close to bankruptcy. The company recovered after 2002, when it was acquired by its current owner, Bratislava-based HTC Investments.
Source: CTK
