2018 Tractor & Combine Harvester Market Review.
2017 was the biggest year in tractor sales in 33 years (since 1982). 12,652 units retailed; In 2018 the market slowed particularly in the second half of the year.
In the first half of 2018 6,437 tractors retailed (141 units or a 2% drop on H1 2017). In H2 5,718 tractors were retailed, 10% down on H2 2017.
Overall the market ended the year slightly down (-4.1% / 497 units) on 2017 with 12,155 tractors sold.
The drought obviously played a huge part in the slowdown in the second half of the year, which combined with tighter access to finance will continue to affect the market into 2019.
Hobby Farmer - 0-40HP
In terms of both units and percentage drop this sector of the market took the biggest hit.
The market was down 5% to end of June and the second half was down 14% YOY to end the year down 10% with 2,680 units sold.
Hobby farmers generally buy machines up to 60HP, and so they have an impact on this category too.
The 40-100HP segment started the year well (up 3% in the first half) but the market fell away in H2 down 13% YOY.
Overall this segment was down 5.4% (292 units) to 3,988 units.
The 100-200HP segment was the only segment to grow and will shortly overtake the 40-100HP segment as the highest volume segment. The market is now over double what it was in 2012.
Similar to other segments the first half of the year showed growth (+12% YOY) and the market slowed in the second half.
Overall the segment posted a 4% increase (157 units) to end the year on 3,837 units.
The market is now over double what it was in 2012 (when 1,782 units were sold).
Traditionally the majority of sales (58%) fall in first half of the year.
The decline in this market was pretty even – down 8% in H1 and H2 to end the year down 8%
2016 and 2017 were great years for combine sales with 860+ units retailed each year.
The key months is Sept / October where 64% of the delivery’s had happened over the past 5 years.
In 2018 Sept was 47% down on 2017 and October was 19% down. Over all the market finished the year on 676 units down 22% YOY.
Bailer sales are very seasonal with October alone averaging 31% of sales over the last 5 years.
This year October was a bumper month sale with sales up 52% on October 2017 to 283 units (35% of the annual sales). November also had a strong flow up with and additional 158 units sold (almost double Nov 2017.
55% of the sales for the year happened in these 2 months. Overall the year finished at 809 units 20% up YOY.
This increase can be attributed to the drought as farmers adjust land usage.
ATV / UTV
To read more on the ATV / UTV market please click here
This review is based on TMA / Agrivew sales data.