Oz tractor sales in reverse

Provided that the Australian tractor and equipment market noticed meteoric gross sales in 2021 and 2022, it was at all times anticipated that 2023 can be somewhat tempered.

December adopted a sample of declines seen earlier within the 12 months, with tractor gross sales for the month at round 1100 items and 35% behind the identical month final 12 months, bringing the year-to-date determine to 14,500, a 25% fall over the identical interval in 2022.

The image was somewhat brighter in greenback phrases, with gross sales 13% forward of the identical month final 12 months, however ending the 12 months 14.5% in arrears of 2022, suggesting that the most important declines had occurred within the smaller measurement ranges.

Deficits have been skilled in all classes, with the one exception being the over 200hp (150kW) vary which climbed 117% on the identical month final 12 months and completed the 12 months simply 6% behind 2023. A lot of the exercise for bigger tractors seems to have occurred in Western Australia, the place a late rush to ship machines by 12 months finish performed a component within the remaining tally.

The beneath 40hp (30kW) class was down 56% for the month of December and is now 30% behind 2022, with trade specialists noting that this “leisure” market has at all times been inclined to rate of interest rises, which had pushed the outcome.

Within the 40 to 100hp (30-75kW) sector, the outcome for the final month of the 12 months was down 45% and completed 28% behind 12 months up to now, whereas the 100 to 200hp (75-150kW) class was down 37%, ending 26% behind YTD.

Across the nation, all states skilled important drops in December, with Queensland, down 33% month-onmonth towards 2022 and 23% behind for the 12 months. NSW was down 35% to be 27% off YTD, whereas Victoria was off 49% and ended 31% behind the final 12 months.

Gross sales in Western Australia have been down 8% and ended 18% behind final 12 months; South Australia was down 15% towards the identical month final 12 months, 16% behind full 12 months; Tasmania was off 30% for the month, 22% full 12 months; with gross sales within the NT ending 19% down for the 12 months.

Gross sales of mix harvesters completed the 12 months strongly, taking the complete 12 months tally to only beneath 1100 items, down 7% on 2022, whereas baler gross sales continued combined fortunes all year long, down 20% on December and ending the 12 months simply two items beneath final 12 months’s complete.

The outlook for 2024 suggests a return to extra ‘regular’ ranges, nevertheless the mixture of issues just like the El Nino impact and ongoing provide chain challenges makes correct forecasting as difficult because it has ever been.