Tractor Sales booming across the nationPosted by Mim Monkivitch, 09th June 2020
For the 3rd consecutive month, we have seen a significant lift in tractor sales across most of Australia as the industry, driven by improved weather prospects along with the increase in the Instant Asset Write off program to $150,000 continues to manage its way through the COVID-19 pandemic.
Tractor sales reported a year on year increase of 30% for May and are now 12% ahead on a year to date basis.
Around the states, huge lifts were once again seen in all Eastern states, Victoria continues to flourish, up another 32% on the same month last year, now 24% ahead for 2020. NSW was again up 38% for the month, now 12% up year to date and Queensland had another strong month rising 34% compared to last May and now sits 10% ahead of last year. The improvement in South Australia continues, 13% up for the month and now 16% ahead of last year whilst Tasmania reported another strong month and is now 21% ahead for the year.
The story in the West turned upwards for the first time in a while, 7% up for the month, 11 % down YTD.
With three consecutive months of above average sales the industry has resumed a level of activity that will give some comfort to dealers after what has been a torrid 2 year period. The news on the weather front keeps getting better and demand for commodities remains extremely strong, even despite some trade tensions with China.
We are still to hear on our request for an extension to the Governments Instant Asset Write Off program which has supported a lot of sales. Any extensions will need to be managed in the context of challenges with supply as previously reported. Whilst factories across the world have begun reopening, the supply pipeline will take time to replenish, and the full impact of this will play out over the coming months.
Turning our attention to the Horse Power demand, the 100 to 200hp (75-150kw) category leads the way with another strong month up 60 %. (31% for the YTD). The strength in the Horticultural space is having a big impact on demand for this range, strongly supported by the financial incentives in place.
The under 40hp (30kw) range, was up 16% for the month and now sits 5.6% ahead for the year to date.
The 40 to 100hp (30-75kw) range was again up strongly 39% now 9% ahead for the year and the 200hp (150kw) and above range dipped 13% for the month and is now 7% behind year to date.
With regards to other products, sales of Combine Harvesters have effectively stalled with very few sales completed in May and the outlook still subdued. Whilst there continue to be encouraging signs of a return to grain planting activity, which will ultimately lead to harvesting, meaningful demand for new harvesters is still a fair way off.
Baler sales continue to be very strong up 10% year to date, whilst sales of Out Front Mowers dipped but remain 16% ahead of the same time last year.
Executive Director TMA