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© 2018 by Retain Media. 

  • Brian Sullivan

2018 Tractor & Combine Harvester Market Review.


Australian Tractor Sales Down 4.1% in 2018

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.


40-100HP Tractors


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.


100-200HP Tractors


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).


200+HP Tractors


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%


Australian Tractor Market by segment 2013 - 2018

Combine Harvesters


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.


Balers


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.