Tractor sales remain sluggish

Sales of new tractors dipped again in the month of May, the Tractor and Machinery Association of Australia (TMA) reported, falling 26 per cent behind the same month last year to sit 25 per cent behind year-to-date.

“May and June of 2023 were the last two months of the Federal Government’s Temporary Full Expensing Program which drove sales to unprecedented levels,” said TMA executive director, Gary Northover.

“We expect a more realistic month-to-month comparison to appear from July onwards as the impact of this incentive disappears.

“Overall, we are still forecasting a healthy 2024 for sales as winter rains across the country deliver ideal growing conditions for the foreseeable future, indeed, dealers are reporting strong demand for items such as seeders and weed spraying equipment which is generally a precursor to strong tractor demand.”

Looking across the states, Queensland was down 15 per cent against the same month last year to be 17 per cent behind year to date, while NSW was down 31 per cent and is now 29 per cent behind for the year.

Victoria was also down by 29 per cent YOY to be 21 per cent below YTD. Western Australia reported a drop of 29 per cent to be down eight per cent compared with the same time last year. South Australia suffered another big drop of 25 per cent YOY, now down 24 per cent YTD while Tasmania was off 39 per cent for the month. Finally, sales in the NT finished 11 per cent up YOY.

Sales of the 200hp plus range, which have been largely positive all year, experienced a 41 per cent drop YOY but remain seven per cent ahead YTD. The under 40hp category was down by nine per cent for the month to be 24 per cent behind YTD, while the 40 to 100hp range dipped by 37 per cent YOY and is now 35 per cent behind YTD. Lastly, the 100 to 200hp category was down 14 per cent to be 19 per cent off for the year.

Sales of combine harvesters are yet to be confirmed, however dealers are reporting a healthy forward order book and expecting another solid season, the TMA said. With tough growing conditions for hay, baler sales finished 30 per cent down on the same month last year and are now five per cent behind YTD.

Finally, sales of out-front mowers were up nine per cent YOY.