Huge drop in tractor sales in July as combine sales soar
Only 750 tractor units delivered in July 2023According to the Tractor and Machinery Association of Australia (TMA), July tractor sales figures were 250 units, or 36 per cent lower than this time last year, with the year-to-date (YTD) figure now 18% behind last year.
“The machinery sales industry is experiencing some significant headwinds at present,” said TMA executive director, Gary Northover. “Machinery prices are high and look to be remaining so, recent interest rate rises are impacting the cost of finance and the expectations of a drier summer have caused some farmers to reconsider their machinery purchases.
“Despite this, we remain optimistic that we will see more of a soft landing as conditions continue to normalise after what has been an amazing two-year period.”
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Tractor sales around the nation were well down across the board. Victoria saw a drop of 32% on the same month last year to be 25% behind YTD while Queensland was down 38% YOY and is now 14% behind YTD.
NSW was down 35% to be 19% off YTD while Western Australia reported a drop of 49% to sit 18% behind YTD.
South Australia recorded a 22% decline YOY to be 8% behind YTD and Tasmania was off 58% for the month, 25% behind YTD. Finally, sales in the NT were 9% down YOY to finish 9% behind YTD.
Looking at the machine categories, the under 40hp category, which the TMA deemed most likely to be affected by interest rate rises, was down by 45% for the month and is now 20% behind YTD.
The 40 to 100hp range was also down 34% and is now 19% behind YTD. The mid-size 100 to 200hp category recorded a drop of 27% to be 21% behind YTD. Finally, sales of the 200hp plus range also dipped in July, down 44% to sit 10% behind last year.
On the other hand, sales of combine harvesters continue to gather pace with more than 350 units already delivered so far this year. That is 75% up YOY and expectations are for an outstanding year ahead.
Baler sales rose slightly to now sit 12% ahead on a YTD basis while out-front mowers also enjoyed another strong month, up 45% on the same time last year.
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