The European tractor market recorded an 11.4% decline in the first seven months of 2024 compared to the same period last year, according to research by CEMA, the Association of European Agricultural Machinery Manufacturers. This decline is partly the result of global uncertainty caused by the conflicts in Ukraine and the Middle East, as well as rising prices and interest rates, which led to a slowdown in the market.
During that period, over 125,000 agricultural tractors were sold, with different trends depending on the power category. Tractors with power above 37 kW suffered the biggest drop in sales, of 9%, with approximately 114,000 units sold. In contrast, tractors with less power, up to 37 kW, recorded a sales growth of 4.5%, with a total of 58,600 newly registered vehicles.
Although the decline in sales was present in most European countries, there were exceptions. In Germany, which is one of the most important markets, sales remained stable with almost 18,500 tractors registered, which is the same volume as in 2023. Spain also recorded sales growth of 9.9%, with 4,600 vehicles registered in the first seven months of 2024, recovering from the complications that dogged the market in 2023. However, France and Great Britain did not have such positive results. France kept the sales loss at 4.9%, with a total of 17,400 units sold, while UK sales fell by 11.7%, with just over 7,700 tractors sold.
Fewer tractors in circulation outside Europe
The Italian market suffered a significant drop in tractor sales of 15.3%, with just over 9,800 units sold. Also, the universal harvester market in Italy recorded a drop of 35.5%, with only 200 new units registered, while sales of telescopic handlers fell by 18.7%, with a total of 612 units sold. These trends are further complicated by the delay in the implementation of incentive measures on the Italian market.
Similar negative trends were also recorded in non-European markets. In the United States, tractor sales fell by 11.9% in July, while India saw an 8.7% decline in sales.
The main causes of the decline in the European and foreign tractor markets are cyclical factors. Among them, the increase in vehicle prices is cited due to the increased costs of production, transport and logistics. And certainly the geopolitical uncertainty caused by the conflicts in Ukraine and the Middle East also plays a role. Nevertheless, the demand for tractors in these markets still remains at a potentially high level, despite the current economic challenges.
Source: AgroTV
Source: boljazemlja.com
