Tractor sales on track to better 2020

It has now been 12 months since Australia’s tractor sales started to boom and there are no signs of slowing down, according to the Tractor and Machinery Association of Australia’s (TMA) latest report.

Tractor sales in February 2021 was up by 74 per cent compared to the same time last year, and is already 34 per cent ahead on a year-to-date basis, leading the TMA to predict that tractor sales this year will likely sit around the 14,000 mark.

“The current level of activity is even more remarkable given the strains with supply being experienced right across the supply chain, although there are early signs that this may be improving,” said TMA executive director, Gary Northover.

“Since mid-2020, supply of product from manufacturing facilities in Europe, the US and Asia have been heavily impacted by the COVID 19 lockdowns and social distancing requirements.

“An indicator of this is the amount of shipping activity being seen through Australian ports which were reported to be around 40 to 50 per cent of normal capacity mid last year. This has now improved to around 90 per cent of normal capacity.”

Activity across all states remain strong with NSW again leading the way, with sales in the state up a whopping 104 per cent compared to this time last year, and now 107 per cent for the 2021 YTD. Victoria reported a solid lift of 53 per cent YOY, now sitting 43 per cent ahead YTD, while Queensland was up 61 per cent YOY and ahead by 62 per cent YTD.

Sales in Western Australia picked up by 92 per cent from same time last year to sit 72 per cent ahead on a YTD basis, while sales in South Australia remained solid, - 83 per cent up YOY. Finally, Tasmania finished the month 45 per cent ahead YTD.

The increase in sales numbers is spread evenly across the four reporting categories, supported by the Instant Asset Write off scheme. The under-40hp range was up 66 per cent YOY and 73 per cent ahead YTD; the 40 to 100hp range was up 68 per cent YOY and 63 per cent ahead YTD, while the 100 to 200hp category was up 55 per cent YOY and 50 per cent ahead YTD.

The larger-200hp and above range finally bounced back after months of slower sales, recording a 141 per cent increase in February 2021 compared to this time last year, and is now sitting 110 per cent ahead for the year.

“Sales of this category of larger tractors have been the most heavily hit by supply issues and we are now seeing evidence of the backlog of orders from 2020 now coming through,” Northover said.

With government incentives such as the instant asset write off and temporary full expensing scheme still in place, TMA said it is expecting a continuation of the strong demand for machines to remain.

“Sales of combine harvesters are in a period of hiatus with the usual order intake season now well underway, while baler sales were up 55 per cent on the same month last year and are expected to remain strong in 2021,” Northover added.

Finally, sales of out front mowers are still solid, with numbers sitting 51 per cent ahead of the same time last year.