722 registrations of new tractors in April – a weaker result than in the previous month this year, but better than at the beginning of the year. However, “dry” registration data does not tell everything, because there are practices used that distort this picture.
According to IBRM Samar data, 722 new tractors were registered in April. Compared to March, this result is 92 machines lower. But it is worth mentioning the first two months of this year, where the numbers were: 698 pieces in January and 530 pieces in February.
Stagnation on the tractor market. Less registrations also in used ones
Several more tractors were sold in March in the category below 70 HP (+15), while in the power range of 71-100 HP there is a drop of 12 units and as many as 97 machines less in the category above 100 HP.
Exceptionally, there was also a significant reduction in the number of registrations of used tractors. 2,186 tractors in March. In the first three months of 2024, the average quantity recorded was approximately 2,450 pieces/month.
Permanent and temporary registrations for dealers
However, the total number of registrations does not necessarily mean the number of machines sold. Registration data includes, among others: permanent and temporary registration of tractors at dealers of a given brand. We hear rumors about the export of registered tractors to “third countries”.
For years, a practice used by dealers of some brands is to record time “on their own”. The number of machines purchased from a brand or main importer often influences various types of gratifications, e.g. price discounts, which seems to be a normal business approach: “you try harder, you sell more, so you get a bonus.” Nevertheless, it “inflates the bubble” and the real sales picture is more or less distorted.
– Taking into account agricultural tractors with a power of 50 HP and above and all registrations, we are talking about a decline in the tractor market of around 20%. Every year. If we include “time tests” (time recordings, editor’s note). – the decline is around 26%. Also, without exaggerating – year to year, this 25 percent. there is a decline – comments Stanisław Gozdek, commercial director at SDF Polska.
As the SDF representative notes, until 2013 the practice of temporary registration was practically not used.
Sales of the largest machines are increasing
The transformation of farms and the structure of purchased machines is also clearly visible. Generally, tractors with power above 150 HP sell better, and the higher the power, the more the share of such machines registered increases.
The market for the largest machines – above 250 HP – is undoubtedly growing – from a dozen to 30 percent annually. the remaining segments “down”.
Machinery market – not very optimistic for now
The current situation in the agricultural industry does not make producers and distributors of agricultural equipment optimistic. As they emphasize, for now there are no major signs of improvement in the situation. Purchase prices of agricultural produce are very low (although they have recently moved up a bit on stock exchanges) and there is a lack of incentives (e.g. broader forms of support programs for the purchase of equipment).
– We certainly cannot count on any “greater warming”. If there was clear information about the distribution of funds, that there would be additional recruitment – either for the “extra time” of Modernization, which is being postponed – which is about PLN 600 million, if Agriculture 4.0 is launched, it will certainly help somehow. There are also many “eco-schemes” that have not been paid. The market is in a phase of major changes, and the conflict in the east continues, notes Gozdek.
At the same time, it reminds that the tractor market has been declining regularly since 2021. Then, after the first 4 months, 3,433 machines were registered.
-Two years later we have 1,973 units, so approximately 1,500 machines have “blown away” from the market. This year we are already descending more or less to the level of 2019, which was the weakest in this respect since 2012, which was a record.
Undoubtedly, this year is a very difficult year in the industry. How to survive it and maybe even get stronger? Certainly, a lot of effort and often non-standard actions are needed on the part of machine manufacturers and distributors. As Stanisław Gozdek says, in SDF they “don’t wait for a miracle”, they just act. Where possible – more favorable prices are offered, but also attractive forms of factory financing are offered.
– We offer 0% financing for up to 5 years on selected models. This will significantly support sales. Today, 7 out of 10 customers use our factory program – sums up the sales director from SDF Polska.
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