The following information is a summary of the European Agricultural Machinery Association’s (CEMA) press release about the European tractor market in 2024. More information is accessible at this link.
EU Tractor Registrations Closed 2024 at Their Lowest Level in a Decade!
Last year, Europe witnessed sales of 204,500 units of tractors throughout the EU zone. According to CEMA experts, 144,400 of these vehicles were agricultural tractors. Of these, 26,500 (18%) were 37 kW (50 hp) and below, and 117,900 (82%) were 38 kW and above. The rest were other types of equipment, such as ATVs, side-by-side utility vehicles, and telehandlers.
The tractor market in the EU has fallen by 8.1% compared to 2023, the lowest level since 2014. Although tractor sales peaked in 2021, they have since fallen for three consecutive years by 20%.
Key Factors of the Declining Demand
As of early 2024, the impact of COVID-19 on the global supply chain was largely a thing of the past. The “de facto” closure of the Suez Canal to commercial shipping has caused some difficulties, but the impact on tractor manufacturers has been limited. The main reason for the decline in 2024 was the drop in demand for tractors from European farmers. Various factors played a role, including declining farmer profitability, reduced government support and unfavourable weather conditions.
Revenue Declines and Cost Increases
Agricultural commodity prices have been falling since the post-war spike in Ukraine in 2022. Prices are lower in real terms than before 2021. Input costs (especially energy and fertiliser) remain high. EU farm incomes fell by 10% in real terms in 2023 and this decline is expected to continue in 2024.
Increase in Demand for High-Power Tractors
Tractor sales have decreased for most power groups, although they have increased for small tractors with less than 22kW and large tractors with more than 185kW (around 250 horsepower). Tractors exceeding 185kW saw a 20% increase in registrations in 2024. These large tractor power groups account for 9% of total registrations (up from 7% in 2023).
Summary of Market Standing by Countries:
- France: Total registrations down 7%. Tractors over 300hp up 13%.
- Germany: Overall down 4%. Slight increase in large-capacity tractors.
- Italy: Worst year since 1952, down 12%. The second-hand market is up 8%.
- UK: Lowest in 8 years, down 12%.
- Spain: Portugal: Increases thanks to improved weather conditions.
- Poland: Down 17%. Biggest decrease in 140- 200 hp (27%).
- Belgium: Up 14%, market recovering.
- Netherlands: Slight decrease. Uncertainty affects investment decisions.
- Austria: Still high compared to pre-COVID, down 5%.
- Türkiye: 63,546 tractors registered in 2024, down 18%. Low-interest credit support from private banks prevents further decline.
CEMA Barometer Results:
Business confidence rises again in early 2025. In March, the business climate index rose from -11 to -5. The market reliability has risen in all European markets. In the non-European markets, the highest credibility was reported for Latin America. Respondents expect an average increase in company turnover of 3% in 2025.
