Tractor sales slip to 750 across Australia during August: TMA

Tractor sales have continued to fall across Australia, with WA leading the pack after posting a 31 per cent drop during the latest reporting period. Sales in WA were down 16 per cent in August when compared to the same month last year, according to a report by the Tractor and Machinery Association of Australia . Nationwide, about 750 tractors were sold in August. “This is 21 per cent less than the same month last year and brings the year-to-date position to a level which is 28 per cent behind (16 per cent behind in dollar terms) the corresponding period,” the report said. “We now have two full months of data not impacted by the Federal Government’s Temporary Full Expensing Program, which ended in June 2023, and the picture is now quite clear that the market is in a state of correction following the recent boom period.” The TFEP program drove tractor sales to unprecedented levels. Dealers reported a “healthy level” of inquiry from the market this August but there was a “lack of urgency” on behalf of buyers, according to TMA. “This should be no surprise given the high levels of inventory in yards and an absence of any further incentives to buy now,” the report said. “Astute purchasers will be aware that deals are there to be done if they aren’t in a hurry, and suppliers are responding with improved pricing and discounted interest rate terms. “On this basis, our expectations for full year sales are now around the 10,000 units mark.” All States recorded declining sales in August. Queensland was 27 per cent behind the same month last year and 24 per cent behind year-to-date, while sales in Victoria fell 10 per cent to be 23 per cent below last year. Sales in NSW were down 21 per cent and remained 35 per cent behind for the year, while in South Australia sales fell 8 per cent, down 30 per cent year-to-date. Sales were off 30 per cent in Tasmania and 29 per cent in the Northern Territory. Meanwhile, sales of combine harvesters ahead of this year’s season had begun, according to TMA. “However, we have only seen around half the number of units sold thus far in 2024,” the report said. “Whilst another solid harvest season is expected, there is no doubt that many growers will be well stocked with machines given the tax benefits of buying during the last few years.”