Tractor sales continue to soften in October
But amid ongoing financial inducements and healthy inventory levels, there are positive signs emergingSales of agricultural tractors continued to soften in October 2024 as the demand for machinery returns to pre-COVID levels.
A total of 1100 tractors were retailed in October, nine per cent in the red compared to the same month in 2023. On a year-to-date (YTD) basis, the industry is around 25 per cent below 2023, although in dollar terms the decline is close to 14 per cent reflecting a greater drop in tractors below 100hp.
Despite healthy inventory levels, discounts and reduced interest rate deals, consumer appetite remains tepid, which is not unexpected given the exuberance of the past three years.
And the situation is not dire, as the dip in sales between 2023 and 2024 has now dropped to single-digit territory – continuing a positive upwards trend – buoyed by damage limitation across the higher-output tractor categories. The next few months will tell whether this positive momentum continues.
Victoria bucks the trend
Across the different jurisdictions, all were down except for Victoria which saw a rise of 13 per cent compared to October 2023 but remains 21 per cent in arrears YTD. The other results were as follows:
- Queensland: down 12 (YOY) and 22 (YTD) per cent;
- NSW: down eight and 32 per cent;
- South Australia: down 31 and 31 per cent;
- Tasmania: down 22 per cent monthly; and
- NT: down 33 per cent monthly.
Horsepower talks
Sales in the tractor categories were as follows:
- Under 40hp: down 11 (YOY) and 22 (YTD) per cent;
- 40-100hp: down by 16 and 35 per cent;
- 100-200hp: down one and 23 per cent; and
- 200hp-plus: down seven and 12 per cent.
Meanwhile, combine harvester sales are down 25 per cent YTD. Baler sales have paused their recent strong run and are down 21 per cent compared to October 2023 and 10 per cent behind YTD.
Finally, sales of out-front mowers were up a massive 42 per cent in October.
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