Ag Industry, TMA

Big tractors defy April sales drop

Big tractors have defied a broader trend of falling, in a return to normal levels in April, the Tractor and Machinery Association says

Sales of agricultural tractors have recorded another decline in April, this time down 31 per cent compared to the same time last year.

There appears to be little doubt that the combined impact of higher interest rates, low stock availability, machinery price rises along with a general drop in demand is seeing sales return to what might be regarded as normal levels.


Sales of 200hp plus tractors were a shining light for April

On a year-to-date basis, we have now seen around 4,500 tractors sold, which translates to an annual figure of around 13,500 units if current sales levels continue.

By comparison, sales figures were around the 18,000 unit mark for the past two years.

In dollar terms the number is considerably different, down only 3.2 per cent on the same time last year, which reflects the mix of sales occurring in the market.

The outlook for the remainder of 2023 is likely to be a continuation of this tapering and while we may see a bump towards June as the government’s temporary full expensing program comes to an end, a full year’s sales figure of around the 12,000 to 13,000 unit mark is expected.

Sales around the nation were down, with Victoria off a whopping 49 per cent on the same month last year to be 33 per cent behind year to date.

Queensland was down 23 per cent and is now 15 per cent behind for the year to date, while New South Wales was down 26 per cent to be 25 per cent off year to date.

Sales in Western Australia reported an overall drop of 27 per cent despite another strong sales of high horsepower tractors, but remains 15 per cent behind last year.

South Australia recorded a 15 per cent drop and now sits 11 per cent behind year to date.

Tasmania was off 22 per cent for the month to be 17 per cent off year to date, while sales in the Northern Territory finished 10 per cent down – but remain 23 per cent up for the year to date.

Looking at the machine categories, we find that the 200hp plus (150kw plus) range jumped again this month, this time by 14 per cent, but remains 17 per cent behind last year.

The small under 40hp (30kw) category, which is the category most likely to be affected by interest rates, was down by 51 per cent for the month and is now 17 per cent behind year to date.

The 40 to 100hp (30-75kw) range was also well down – 29 per cent in the month and is now 22 per cent behind year to date.

The 100 to 200hp (75-150 kw) category was down by 37 per cent and remains 28 per cent behind year to date.

Sales of combine harvesters have virtually now come to an end for this time of the year, however dealers are reporting a healthy forward order intake which bodes well for another strong season.

Baler sales enjoyed a jump in April, up 40 per cent on the same month last year and are now up 5 per cent on last year, while sales of out-front mowers continued their downward trend and were off by 6 per cent for the month.

Just a reminder, the annual TMA conference is being held this year in Sydney on Wednesday July 19 at the Stamford Plaza, Sydney Airport.

Ticketing and event information will be available on the TMA’s website as the association looks forward to another great event.

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