While national tractor sales continue to be modest, Tractor and Machinery Association figures show Victorian sales were up in October while high-horsepower units appear to be lifting
Sales of agricultural tractors continue to soften across Australia as the demand for machinery returns to pre-COVID-19 levels.
October saw around 1,100 tractor sales nationwide, which is 9 per cent below the same time last year.
On a year-to-date basis, the industry is around 25 per cent below the same time in 2023, although the decline is close to 14 per cent in dollar terms.
This reflects a greater drop in sales of tractors below 100hp.
Factors influencing this drop remains unchanged from previous months – dealers have an abundance of inventory, price reductions are occurring along with reduced interest rate deals.
The only thing missing is a sense of urgency on behalf of the customer, which is not unexpected given the experiences of the past three years or so.
One can see signs of improvement though, as this is the first month in some time that was within 10 per cent of the same month last year.
This has been buoyed by a strengthening in the larger horsepower tractor ranges and the next few months will tell whether this trend is sustainable.
Looking at the state-by-state picture, all states were down except for Victoria.
That state saw a rise in sales of 13 per cent against the same month last year but remains 21 per cent behind for the year to date.
Queensland was behind by 12 per cent against October 2023, to be 22 per cent behind year to date.
New South Wales was down 8 per cent for the month and remains 32 per cent behind for the year, while Western Australia reported a drop of 20 per cent compared to October 2023 and is down 13 per cent compared with the same time last year.
South Australia had another big decline of 31 per cent to be down 31 per cent for the year to date.
Tasmania was off 22 per cent for the month with sales in the Northern Territory finishing 33 per cent down.
Sales in each of the reporting categories were also lower this month.
The small, under 40 horsepower (under 30kw) category was down by 11 per cent compared to October 2023, to be 22 per cent behind for the year to date.
The 40hp to 100hp (30-75kw) range was down, this time by 16 per cent, and is now 35 per cent behind for the year to date.
Tractors in the 100hp to 200hp (75-150kw) category reported a smaller drop of just 1 per cent for the month and remain 23 per cent down for the year to date.
Finally, the 200hp plus (150kw plus) range was 7 per cent down compared to the same month last year, and is now 12 per cent behind for the year to date – which represents the smallest year-to-date drop of any size category.
Sales of combine harvesters are not keeping up with last year and currently sit 25 per cent behind 2023 on a year-to-date basis.
As with tractors, the market has been well stocked over the past few years and some tapering is to be expected.
Baler sales have paused their recent strong run and were down 21 per cent against the same month last year and are about 10 per cent behind for the year to date.
Finally, sales of out-front mowers provided a bright spot, being up by a massive 42 per cent in the month in time for mowing season.
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