The uncertainty related to conflicts in Ukraine and the Middle East, rising purchase prices, and increasing interest rates are slowing the market, which recorded declines between January and July in Europe, the United States, India, and Turkey. Registrations are also down in Italy.

The European tractor market closed the first seven months of 2024 with a decline of 11.4% compared to the same period last year, according to periodic surveys from CEMA, the committee of manufacturers that brings together national associations from European countries.

According to the data released by the Committee, tractor sales during the considered months surpassed 125,000 units, with varying trends depending on power classes. The largest drop was seen in tractors over 37 kW, which recorded a 9% decline (around 114,000 units sold), while the low-power category (up to 37 kW) showed good resilience, increasing by 4.5% with 58,600 new registrations.

The contraction in sales affected the majority of European countries, but there were some significant exceptions. Among the main national markets, Germany showed substantial stability, with approximately 18,500 units registered, confirming the same volume as in 2023, and Spain saw a rebound. After a challenging 2023, the Iberian market registered a 9.9% increase in purchases between January and July (4,600 machines). The situation in France and the United Kingdom was less positive: while the French market managed to contain losses to 4.9% (17,400 units), the British market recorded an 11.7% drop, with just over 7,700 machines sold.

In Italy, registrations in July indicated a decline of 15.3% for tractors (just over 9,800 units), while combines were down by 35.5% (200 units), loading platform tractors saw a 20.3% decrease (330 units), and telescopic handlers dropped by 18.7% (612 units). Trailers limited their decline to 1.9% (just under 4,800 units). In Italy, the rising costs are compounded by uncertainty regarding the continuation of various incentive measures (reallocation of PNRR-Next Generation funds, Transition 5.0, and the second tranche of the Innovation Fund).

As for the performance of non-European markets, the data seems to confirm an unfavorable trend for two of the main countries: in the updated sales statistics through July, the United States reported an 11.9% contraction in tractor sales, while India recorded an 8.7% decline for tractors.

The decline in the European market and in major markets is influenced by cyclical factors, such as the increase in machine prices due to rising production, transportation, and logistics costs, along with the general uncertainty created by geopolitical variables and ongoing conflicts in Ukraine and the Middle East. However, demand remains potentially high. “The forecasts for the period from 2024 to 2027,” explained FederUnacoma President Mariateresa Maschio, “indicate an average annual increase of 4.9% for the tractor market globally. A similar trend is expected for other types of machinery, which are projected to grow by 5.4% annually by 2027.”