september sales boom
Left: The 40 to 100hp (30–75kW) tractor range was up 27 per cent, meaning it is now 22 per cent ahead for the year
After another good month, 2020 might be the year that tractor sales pass the 13,000 mark for the first time since the 1980s, according to the Tractor & Machinery Association
S
ales in the month of September were up 29 per cent on the same month last year and are now up 22 per cent year to date, supported by good weather, demand for produce and the federal government’s instant asset write off program. State-by-state NSW was the standout, based on its continued recovery, with sales up a whopping 41 per cent compared to September 2019 and now sitting 30 per cent ahead for the year. Victoria reported another strong month, up 27 per cent and now 22 per cent ahead for the year to date (YTD), while Queensland was up 22 per cent to be 14 per cent up for the year. Western Australian sales were down due to some negative weather events and remains 4 per cent behind last year. Sales in South Australia are back on track with another strong month after a poor 2019, now 60 per cent up YTD, activity in Tasmania remains strong, now 25 per cent ahead for the year. Sales at the smaller end of the market are largely responsible for the rise. Sales in the under 40hp (30kW) range were up 71 per cent for the month and now sit 29 per cent ahead for the year to date, while the 40 to 100hp (30–75kW) range was up
27 per cent, now 22 per cent ahead for the year. The 100 to 200hp (75–150kW) category bounced, up 26 per cent and still up 31 per cent for the YTD, while sales in the 200+ hp (150kW) range were again down another 23 per cent, leaving this category 9 per cent behind YTD. Persistent drought in NSW and Queensland, as well as ongoing challenges in WA, has seen demand for large tractors slide, and recent price increases is creating more pressure. Sales of combine harvesters remain steady, with most product now in place for the upcoming harvest season – meaning the full year picture will be between 15–20 per cent down on last year. Baler sales were again very strong, remaining up 38 per cent year to date, while sales of out-front mowers were strong and still 15 per cent ahead of the same time last year. Recent budget announcements such as extension of the Instant Asset Write Off program, incentives for apprenticeships and increased investment in R&D go a long way to building confidence in the industry. Combined with historically low interest rates and La Niña weather patterns being experienced across much of Australia, the outlook for the industry remains extremely positive.
Gary Northover is executive director of the Tractor & Machinery Association of Australia (TMA). He can be contacted on (03) 9813 8011 or at gary@tma.asn.au
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22/10/2020 10:49:11 AM
