Friday, 19 July 2024 10:55

Global ag tractor sales: volume down, value up

Written by  Mark Daniel
The total number of tractors sold last year topped 2.2 million units, marking an 8% decline compared to 2022, while revenue rose 2% to $57 billion. The total number of tractors sold last year topped 2.2 million units, marking an 8% decline compared to 2022, while revenue rose 2% to $57 billion.

With 2023 behind us, the global market for agricultural tractors closed with a decline in terms of units, but with growth in terms of value.

The total number of tractors sold reached around 2.2 million units, marking an 8% decline compared to 2022, while revenue rose to $57 billion, representing a 2% increase.

Looking at the broader picture, complementing that $57 billion related to tractors, other types of farm machinery notched up $73 billion (+2%) and farm machinery components delivered sales of $34 billion (+5%), for a total industry revenue of $164 billion, up 3% compared to 2022. The increases were driven by higher price lists, in turn, driven mainly by inflation and the increased cost of raw materials.

Globally, individual markets showed varying results, primarily due to the performance of harvests and agricultural incomes. India confirmed a total of 915,000 tractors sold, a result like the record volumes reached in 2022, while China stalled at around 380,000 units, a significant 28% decline compared to the previous year.

The United States recorded a total of 250,000 tractor sales, an 8% decline, attributed to the contraction of agricultural incomes, partly due to reduced exports of commodities to the Chinese market and increased competition from other producing countries in international markets.

Europe achieved sales of 158,000 tractors, a 5% decrease said to be a consequence of insufficient agricultural profitability and partly due to unfavourable weather conditions that negatively impacted some crops. Within the market, France saw a 2% increase to 36,400 tractors registered, Germany remained stable with 28,900 units, while in contrast, Italy dropped by 13% to 17,600 units, and Spain an even steeper decline of 18%, finishing at 7700 units.

Beyond the four major markets, Turkey grew by 16% to nearly 78,000 tractors, Canada was back by 10% at 28,000 tractors and Russia recorded 36,000 units sold, in line with the registrations of the previous year. Sales in Japan remain unchanged at 34,000 units.

Industry forecasts for the near future still predict high global demand, although the market is likely to be increasingly exposed to climatic and geopolitical variables. Globally, declines in cereal production in Ukraine and Russia have tended to be offset by increases in Brazil, Australia and India. Industry sources suggest that this might result in a new “geography” for the machinery and technology industries, with a decline in tractor sales, but with an increase in horsepower and revenues.

More like this

LDV unveils all-new Terron 9 Elite ute

As if there wasn’t enough choice in the New Zealand ute market, LDV New Zealand is expanding its offering, by showcasing the all-new Terron 9 Elite at Fieldays.

John Deere acquires Sentera to boost smart farming capabilities

While tractors combines and machinery for agriculture and construction is still its key business, John Deere appears to be taking opportunities in the hightech sector via acquisition, with the recent purchase of Sentera, a Minnesota-based company that specialises in equipment for capturing and interpreting aerial images.

Fendt 600 Vario Series arrives in NZ

Released in New Zealand earlier in the year, the new Fendt 600 Vario series, serving the 150-200hp category, is a compact and manoeuvrable 4-cylinder tractor with high performance and payload, at a low power-to-weight ratio.

Featured

National

Machinery & Products

» Latest Print Issues Online

The Hound

Overbearing?

OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…

Foot-in-mouth

OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter