Document: 2015-07_Agrievolution_Tractor_Market_Report.pdf

New Agrievolution Tractor Market report

After four strong years, global tractor sales have become weaker. Most markets are affected by saturation (in conjunction with attractive second‐hand machinery prices) and lower purchasing power of the customers. Sales in the segment > 30 hp have dropped by 17% in the first half 2015 when excluding China or by 3% when the Chinese sales figures are included. The difference between these two numbers illustrates which great impact the Chinese figures have on the world total now, as the country has become the number one market in the world with regards to unit terms. It might not be surprising that the trend is still so much weaker for smaller than for bigger tractors in China.

On the other hand, the development is currently reverse in the USA and (to a lower extent) in Canada, where “hobby farmers” spend their money for new equipment, while professional farmers are much more hesitant after a long period of extensive investment. The global sales trend for the second half is not supposed to be more promising. Crop commodity prices might experience a certain push, but quantities will counterbalance this effect for total farm profit.