Slow start for tractor sales

The Tractor and Machinery Association of Australia (TMA) reports that sales of tractors in Australia for the month of January were down significantly from the same month last year, but the picture changes markedly from one side of the nation to the other.

In fact, tractor sales fell by around 19 per cent for the first month of 2024, with around 650 units sold compared to around 800 at the start of 2023.

TMA says the subdued performance is due at least in part to the Federal Government’s Temporary Full Expensing Program, as the stimulus package was still in place in the first half of 2023.

“This picture reflects an ongoing return to normal trading conditions and whilst it is always challenging making predictions off one month’s trading, the general outlook appears to be less pessimistic than one may have expected,” states a TMA press release.

“As was the case last month, whilst the unit numbers may have been down compared to last January, in dollar terms this year was 48% stronger than the same month last year.

“Falls were experienced in all machine categories except for the 200hp-plus (150kW) range, which was again up this time by an incredible 158% on the same month last year. Much of the activity for larger tractors continues to occur in WA, where major fleet replenishments appear to be underway. The small under-40hp (30kw) category was down by 35% for the month. This ‘leisure’ market has long been considered susceptible to interest rate rises and manufacturers appear to be responding with interest rate specials and other incentives to try and stimulate demand.

“The 40-100hp (30-75kW) range was also down 33% and lastly, the 100-200hp (75-150kW) category was down 13%.”

Across the regions, Western Australia was up 29% on the same time last year. South Australia was also up, by 11%, but all the remaining states were down. Queensland was down by 16%, New South Wales was down 32%, Victoria was down 12%, the NT was down 47% and Tasmania was down 56%.

“Sales of combine harvesters as always begin with a trickle in January, and we should soon get some insights into the full year forecast as dealer order books begin to finalise,” says TMA.

“Baler sales have continued their up-and-down run, up 40% on January last year, and sales of out-front mowers were up by around 47% in the month.”

In other TMA news, the organisation has announced its TMA Conference will be held at Melbourne’s MCG on July 18, with ticket sales likely to commence in April.