Tractor sales still weak despite strong enquiry

Sales of agricultural tractors dipped again in September with around 800 units sold, the Tractor and Machinery Association of Australia (TMA) reported.

That represents an 18 per cent dip compared to the same month last year and brings the year-to-date position to 26 per cent behind the same period last year.

“As we reported last, dealers are reporting a healthy level of enquiry from the market, but this is yet to transfer into robust sales,” said TMA executive director, Gary Northover.

A recent survey conducted by market research company, Kynetec, showed an overwhelming number of farmers are optimistic about their current and future financial situation, which bodes well for machine sales to bounce back in the coming years, the TMA said.

The state-by-state breakdown showed declines across most regions. Queensland was 12 per cent down YOY (23 per cent down YTD) while sales in Victoria fell by 33 per cent YOY (24 per cent down YTD).

New South Wales’ figures dipped by 20 per cent YOY (34 per cent down YTD) while South Australia was down a whopping 46 per cent YOY (31 per cent down YTD).

Western Australia was the only state with some positive news, reporting a rise of 27 per cent YOY to be down 12 per cent YTD. Tasmania and Northern Territory both experienced drops of 30 per cent and 29 per cent YOY, respectively.

Sales by category also saw some big dips. The under 40hp category fell 14 per cent YOY (23 per cent down YTD), the 40 to 100hp range was down by 16 per cent (37 per cent down YTD) and the 100-200hp category dropped 23 per cent YOY (25 per cent down YTD).

Lastly, sales of large tractors (200hp and above) fell by 19 per cent YOY (12 per cent down YTD).

On a brighter note, combine harvester sales were strong in the lead up to the upcoming season with approximately 350 new deliveries so far this year. Baler sales continue to thrive with a 23 per cent lift in sales YOY (five per cent down YTD). However, out-front mower sales fell slightly by one per cent.