Tractor sales slump in August

The Tractor and Machinery Association (TMA) has reported a further decline in new tractor sales, with its latest sales figures showing a 19 per cent drop from July and now sitting 12 per cent behind last year.

The slump was recorded across all states including Western Australia which has enjoyed a fairly buoyant year so far. Tractor sales in WA is now sitting six per cent behind last year.

Across the nation, NSW continued to suffer the biggest declines with a further 27 per cent drop in sales in August, now 22 per cent behind last year. Queensland, which had been showing signs of recovery, dropped 14 per cent for the month and is now seven per cent behind for the year.

Victoria had a solid month and is now in line with August last year but sales in South Australian recorded a 48 per cent drop in August, now 25 per cent behind last year. NT sales also dropped, now five per cent behind last year.

Tasmania is the only state bucking the trend, recording a seven per cent increase in year-to-date sales.

“The market across Australia is being hampered by a distinct lack of confidence arising out of the drought being experienced in the Eastern States combined with a somewhat circumspect attitude being felt in the leisure sector which continues to contain low horsepower tractor sales,” said TMA Executive Director, Gary Northover.

“The growth of this lower end of the market has been a standout for the industry over the past decade but it is showing signs similar to those in the wider economy, much of which has been written elsewhere.”

Sales in the 200hp and above segment dropped by 36 per cent from July, now sitting four per cent behind year-to-date. The 100 to 200hp segment also suffered a big drop, down 10 per cent for the month and now 14 per cent behind last year. The 40 to 100hp range was also down 25 per cent, now sitting 14 per cent behind last year.

The under-40hp range dropped 13 per cent in August and is now 10 per cent behind last year’s figures.

Combine harvester sales sat at around half of last year’s sales with the trend expected to continue through harvest season.

Baler sales continue to soar as the demand for hay is still strong. August sales were up 46 per cent on last year and are now 22 per cent ahead on a year-to-date basis.

Sales of out front mowers were also up 10 per cent for the month in preparation for the grass growing season, now sitting in line with last year on a yearly basis.

TMA’s latest quarterly dealers’ survey reflected an ongoing pessimistic outlook, Northover said.

“Dealers are generally reporting low levels of confidence in the outlook along with a generally poor order bank, all of which will be driven by the rainfall outlook,” he said.