Tractor sales volume down but value up

Around 850 new tractors were sold and delivered across the nation in April 2024, marking a 12 per cent drop from the same month last year, the Tractor and Machinery Association of Australia (TMA) reported.

The organisation said this signals the continuation of the shift back to more ‘healthy’ levels and with a figure of around 3500 units sold so far this year, the industry is on track to sell around 11,000 to 12,000 units this year.

“Notwithstanding this, conditions in the market remain very competitive with some dealers reporting large stock holdings and challenges associated with recent price increases,” said TMA executive director, Gary Northover.

“It is not unusual, therefore, to find some sharp deals to be had in the market today.”

Across the states, Queensland was down 13 per cent against the same month last year to be 18 per cent behind year to date, while NSW was down 22 per cent YOY and 28 per cent behind YTD.

Victoria was up slightly – three per cent to sit 18 per cent below last year and Western Australia reported a small rise of one per cent to be in line with the same time last year.

South Australia suffered another big drop - down 18 per cent and 24 per cent behind YTD while Tasmania was off 42 per cent for the month. Sales in the NT were 30 per cent down YOY.

In terms of horsepower, the 200hp plus category led the way when it comes to sales numbers, recording a one per cent rise on the same month last year to be up 32 per cent YTD.

The small under 40hp category was down by three per cent for the month to be 28 per cent behind year to date. The 40 to 100hp range was also down 32 per cent to be 35 per cent behind year to date. Lastly, the 100 to 200hp category was down six per cent YOY to be 21 per cent off for the year.

“This mix of sales means that, whilst in volume terms the market is down on the same time last year, in dollar terms it is in fact up 14 per cent,” Northover said.

“This highlights the approach many larger farmers take with their fleet replenishment strategies. Many machines are now being sold on 3- or 5-year leases which are programmed into customers capital cycle so even though the agricultural market may experience some gyrations, we are seeing a more stable outcome when it comes to larger machinery purchases.”

Sales of combine harvesters are yet to materialise, however, dealers are reporting a healthy forward order book and expect another solid season, TMA said.

Baler sales finished steady on the same month last year and are now in line year to date. Finally, sales of out-front mowers were up again, this time by around 57 per cent in the month.