Eight challenges face global tractor marketers in the year ahead, says a new sales report from the Agrievolution Alliance.

  1. Regional Variation – While the number of new tractors sold globally in 2014 declined slightly to 2.1 million units, regional results showed high variation.
  2. U.S./Canada Upswing Ends – The upswing in the North American tractor market came to an end in 2014. Still, more than 235,000 tractors were sold in the U.S. and Canada, with volumes approaching the very high levels seen at the beginning of the 2000s.
  3. Brazil Starts Year with Decline – The Brazil market came back to 2010-12 levels in 2014 with around 55,000 units. One-third of these were tractors under 100 horsepower. While trends for the start of 2015 show another decline, it should be limited.
  4. Japan Sees Sharp Drop – In Japan, the Asia region’s most developed country for agricultural machinery, tractor sales went down very sharply. The result was a decline of 15 percent for 2014.
  5. China Down After Years of Growth – The Chinese market has grown considerably over the past few years. However, sales went down in 2014, especially in the very small power segments.
  6. India Slides in Second Half – Tractor sales in India are the highest for any single country in the world. In 2014, 593,000 units were sold. After a strong first half, however, sales went down from month-to-month, especially in the last quarter of the year.
  7. Turkey Strong but Volatile – Turkey is another high-volume market for tractors. In 2014, investment by farmers was very strong, and tractor sales almost reached the very high level of 2011. However, the market has been very volatile over the years.
  8. Sales Decline in Europe – In Europe, manufacturers found very different circumstances from country-to-country. Nevertheless, with an overall sales decline of 8 percent in 2014, the trend was clearly down. Agrievolution estimates see a decline in the global tractor market by another 5 percent in 2015, with stronger trends in the emerging markets and weaker demand in the developed markets of North America and Western Europe.

The full report on the 2014 global market for agricultural tractors is available to all AEM members through the Agrievolution Alliance. (AEM member login is required.)