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By TMA
November 25, 2008
The remarkable strength of the tractor sales market continues across Australia according to sales figures as at the end of September.
Sales of new tractors over the previous 12 months were up almost 17.5 per cent when compared with sales for the year earlier. Sales remain strong across all states though the most active sales regions within those states does differ from a year ago.
Based on reported sales and industry estimates, the total number of new tractors sold in this calendar year could exceed the modern high of the 12,531 new tractor sales recorded in 2005. The current growth effectively covers the fall in tractor sales recorded in the previous year.
2008 has certainly been a year of significant sales growth. So far in 2008 reported tractor sales have been the highest recorded since 1985 for the months of April, May and July. Sales in February were the highest recorded since 1984 and in January they were the highest recorded since 1990. In July sales topped 1,000 units for the first time since 1987 whilst in October sales exceeded 1,000 units for the month for the first time since 1984.
As has been the case in recent years, the growth has come from the compact tractor sector though all power segments, including the largest tractors, have met with increased demand.
The spectacular growth in the 15-30kW power segment and the 30-45kW power segment shows no signs of slowing whilst the smallest tractors (0-15kW) recovered most of the drop in sales from the year earlier.
The 15-30kW power segment grew by almost 40 per cent in the 12 months from 1247 units to 1730 units. This is on top of having grown by more than 27 per cent the year before that. There has now been growth in this power segment for seven years consecutive years. The growth is clearly illustrated by comparing the average annual sales for the past five years (1083) compared with the previous five years average of 527.
The 30-45kW power segment has also grown for seven consecutive years. The 1588 units was an increase of almost 18 per cent on the 1243 sales of the year earlier and well above the average sales for the previous five years of 977. In historical terms it is only in the past year that tractor sales in this power range have exceeded the totals recorded in 1998 and 1999.
Sales of the smallest tractors (up to 15kW) continue at strong levels with 1524 deliveries. This was up about 11.5 per cent on the previous year and just slightly above the average annual sales over the last five years of 1490 units. However, such has been the growth in this sector that the average annual sales in the five years previous was only 668 units.
The highest selling power range continues to be the 45-60kW tractors with a total of 2839 units sold in the 12 months ending September. Sales were up more than 18 per cent on the year previous which recovered most of the sales lost the year before that. This year’s sales are just above the average annual sales for the previous five years.
The bigger the machines get, the less attractive the sales story, though 2008 has been a year of improved sales for almost every tractor power category.
The biggest tractors sold, over 200kW, recorded an increase of 31 units for the year. This year of consolidation for that sector comes after sales hit all time lows in 2007. It is also likely that these machines are the most affected by limitations in supply and changes to ordering procedures.
Sales of 150-200kW tractors increased by more than 20 per cent for the year. This recovery was most welcomed as sales in this power category had also recorded all time low results in 2007. Sales of 120-150kW tractors and 105-120kW tractors also grew by about 16 per cent and 12 per cent whilst sales of 90-105kW tractors were up almost 10 per cent for the year.
Mid range tractor sales were also up. Sales of 60-75kW tractors increased by about 4 per cent having fallen by more than 13 per cent the previous year whilst 75-90kW tractor sales increased from 735 units sold to 855 having fallen from 1124 the year before.