Jan - June 2018 Tractor, Combine Harvester and ATV / SxS market Review.
The Tractor Market has been on a strong run the past 10 years. 2017 saw 12,652 units (+8.1% YOY) retailed; the biggest year in the market since 1982 (33 years ago).
The drought is top of mind with farmers particularly in NSW and its effects are starting to impact the numbers.
2018 has had a strong start with sales up 9% to 3,384 units in Q1. This growth has slightly slowed in Q2. In the first half of 2018 with 6,437 tractors retailed (141 units or a 2% drop on H1 2017).
Hobby Farmer - 0-40HP
EOFY incentives usually make June the biggest month for this category. This year Q2 is down 7% on last year to 718 units. Overall the category was down 5% for the half to 1,374 units.
Hobby farmers also play a big part in this category generally buying machines up to 60HP
The 40-100HP segment grew 3% in the first 6 month to 2074 units.
Like the 0-40HP category EOFY usually makes June the biggest month of the year. Despite the category growing over the 6 months sales in June were slightly down 7% (42 units) on June 2017.
The 100-200HP segment has been the main drivers of growth in tractor sales over the past 5 years. It has continued to grow in the first 6 months up 12% YOY to 2,028 units (in 2012 1,782 100-200HP tractors sold for the year!)
June is traditionally a big month in this segment. This year, June was the only month where sales were not greater than the corresponding month in 2017.
The year started very strong and then began slowing down around May.
The majority of sales (58%) are in first half of the year. This year sales of the 200HP tractors are down 8% YOY (79 units) to 961 units.
The combine market is quiet every year Jan – June. Over the past 5 years on average 11% of the annual sales are made in the first half.
H1 2018 has started well with 108 units retailed in H1 compared to the 93 last year. We are just about to hit peak season; September / October where 65% of units were retailed over the past 5 years.
Like the combine market, sales of bailers are seasonal and traditionally H1 is very quiet in this market – roughly 10-11% of annual sales.
In that light, not much can be read into H1. 107 units were retailed - slightly above the average of 103 over the past 5 years. We are now entering key selling period September – November where, on average, 67% of the market activity has taken place over the past 5 years
ATV / UTV
The ATV market ended the half down -10.7% (selling 11,196 units).
Q2 is the main sales time in this market and 1,332 units less were sold in Q2 2018 than in Q2 2017 and all brands posted a decline for the half.
Honda's sales were down 16.2% (to 3,065 units). This is part of a broader decline in their market share. 4 years ago, in June 2015, Honda had 33% market share. Now they have 27%.
(This number is incomplete as John Deere, Kioti, CF Moto, Kymco and others do not supply sales data to the FCAI).
This review is based on TMA / Agrivew sales data and ATV report is based on FCAI sales data.