Tractor sales up almost 50pc YOY

The new tractor market in Australia has continued to boom after sales in June increased by a whopping 48 per cent ahead of the same month last year, now sitting 21 per cent ahead year-to-date (YTD), according to the Tractor and Machinery Association of Australia’s (TMA) latest report.

TMA executive director, Gary Northover, said the Government’s Instant Asset Write off scheme has created the “perfect storm” for tractor sales. Favourable weather conditions and strong demand for locally produced food as a result of the COVID-19 pandemic have also bolstered optimism in the farming industry, he added.

All states have reported an increase in sales with NSW leading the pack with a 54 per cent jump year-on-year and 22 per cent up YTD. Queensland is 36 per cent ahead of last June, now 17 per cent YTD, while Victoria is up by 46 per cent YOY, 30 per cent ahead YTD.  Western Australia recorded an increase of 33 per cent YOY and now sits three per cent behind YTD.

South Australia is continuing to claw back from last year’s poor run, notching a whopping 81 per cent increase for the month while Tasmania continues to flourish - up 39 per cent for the month and now 26 per cent ahead for the year.

Unsurprisingly, the lower to mid horsepower segments were the ones which flourished because they qualify for the IAWO incentive. The 100 to 200hp category led the way with a 66 per cent increase on last June while the 40 to 100hp range was again up strongly 48 per cent YOY.

The under 40hp range notched an increase of 50 per cent for the month and now sits 16 per cent ahead YTD.

The only size category to not report a spike in sales is the large 200hp range which reported a drop of seven per cent YOY.

With the IAWO incentive now extended to the end of the year, dealerships across the country are expecting demand for machinery that qualify for the scheme to remain strong, the TMA reported.

While the increase in sales might spell good news for the industry, the question now is, how are dealerships placed to keep up with demand?

“Supply of machines from places such as the US and Europe are beginning to resume after periods of factory closures and reductions in production due to the imposition of social distancing protocols,” Northover said.

“Product coming out of places like Japan however remain largely on schedule as these locations were less impacted.

“What this means for purchasers is likely to be a little less in terms of flexibility and choice, however, you will still be able to buy a tractor!”

With regards to the other product categories, sales of combine harvesters have picked up ahead of the harvest season with 134 units sold in the first half of the year compared with 113 in the first half of last year.

Baler sales also boomed in June, now 36 per cent YTD, while sales of out front mowers were also healthy and remain 15 per cent ahead of the same time last year.

Northover also commented on the results of TMA’s latest Quarterly Dealer Business Sentiment Survey, saying the outlook expressed by dealers is quite positive.

“Of interest was the response to the question regarding plans for the workforce with the majority of dealers stating they plan to continue to hold onto their workforce with a growing number looking to expand,” he concluded.