Well-known Czech tractor manufacturer Zetor is set to end tractor production in Brno after 80 years, relocating manufacturing to India. According to Reuters, the move is solely down to costs, with Zetor saying that it feels tractor production in Europe is no longer considered economically efficient.

“Manufacturing small and medium-sized tractors in Europe does not make sense under the current conditions,” Robert Harman, Zetor operating director, said in a statement to Reuters.

The manufacturer has not set a date on when the production will shift from the Czech Republic to India

Zetor said materials are 30 to 35% cheaper in China or India and that many of its suppliers have also moved production from Europe to Asia, affecting its import costs.

The manufacturer has not set a date on when the production will shift from the Czech Republic to India, but it did note that this year’s tractor production plans would not be affected. The move to Indian manufacturing means 33 Czech jobs are being cut.

Czech Republic is home

Despite the move in manufacturing, the Irish Farmers Journal understands that Brno will remain home to the company’s headquarters, with logistics, sales, marketing and development retained there, while a spare parts business and distribution hub will also be run from there.

Financial difficulties in recent years have forced a business restructuring, leading to a scaling-back of operations.

Zetor ended the production of its own engines and transmissions in Brno in 2024 as part of a strategic shift towards outsourcing. Modern Zetor tractors are now assembled using European components.

80 years manufacturing

The announcement comes just several months after Zetor celebrated 80 years of tractor manufacturing at the Zbrojovka factory in Brno.

With production kicking off in 1946, Zetor entered the Irish market in 1947.

The once market-topping brand has gone from a low in the 1940s to highs in the 1970s and a market share of over 22%, to a situation today where just one new Zetor tractor has been registered in Ireland in first six months of 2026.

For the past seven years in Ireland, Zetor has been distributed by Zetor UK with a declining number of dealers. Zetor said that its global tractor sales reached 1,500 units last year.