Tractor sales down 25pc in 2023

In the month of December 2023, new tractor sales slowed right down with only about 1100 units sold, which was 35 per cent behind the same month in 2022, according to the Tractor and Machinery Association of Australia's (TMA) latest report.

This brings the Year-to-date (YTD) figure to around 14,500, 25 per cent behind 2022’s record-breaking figures.

However, in terms of dollars, December 2023 sales were 13 per cent ahead YOY, which meant the biggest declines occurred in the smaller horsepower ranges.

“We have been forecasting for some time a return to more normal sales volumes following two years of unprecedented activity,” said TMA executive director, Gary Northover.

“The outlook for 2024 suggests more of the same, however with the El Niño effect not currently what was expected, combined with ongoing supply chain challenges, accurate forecasting is as difficult as it has ever been.”

Sales fell across all machine categories except for the 200hp plus range which was up 117 per cent YOY to finish the year six per cent behind YTD.

Much of the sales for larger tractors appear to have occurred in Western Australia where there was a late rush to deliver machines by year-end.

The under-40hp category was down by 56 per cent for the month and 30 per cent behind 2022.

“This ‘leisure’ market has long been considered susceptible to interest rate rises and there is no doubt that buyers have felt the pinch in this regard, particularly in Victoria,” Northover said.

The 40 to 100hp range was also down 45 per cent YOY to sit 28 per cent behind YTD while the 100 to 200hp category was down 37 per cent, ending 26 per cent behind YTD.

All states experienced significant drops in tractor sales in December, beginning with Queensland which was down 33 per cent YOY and 23 per cent behind YTD. New South Wales was down 35 per cent to finish 27 per cent off YTD and Victoria was 49 per cent off YOY and 31 per cent behind YTD. 

Sales in Western Australia were down eight per cent YOY to sit 18 per cent behind YTD, while South Australia was down 15 per cent YOY and 16 per cent behind YTD.

Tasmania was off 30 per cent for the month and 22 per cent behind YTD and finally, sales in the NT finished 19 per cent behind YTD.

It was a strong year for combine harvesters, on the other hand, with the full year tally just under 1100 units.

“While this was down seven per cent on 2022, it has been another strong year for combines in support of what has been a big harvest season,” Northover said.

Baler sales dropped by 20 per cent in December against the same month last year to finish a mere two units below last year’s tally. Finally, sales of out-front mowers were down by around nine per cent compared to 2022.