New Holland is celebrating a vintage year after increasing sales across its agricultural ranges and picking up a raft of technology awards in 2003. And early indications are that 2004 will be even better.
UK tractor sales substantially outperformed the market, marking the sixth successive year of growth for the CNH brand.
Leading New Holland's assault on the tractor market was the new, long-wheelbase TM Series units including the 2003 Tractor of the year, the TM190. Along with the high-horsepower TG Series, these powerful models in the 170hp-plus market sector achieved sales substantially above the level seen in 2002.
Between 121hp and 169hp a similar pattern emerged, with the TM120, TM130, TM140 and TM155 all outperforming the market. The sales figures support a general move among buyers towards higher horsepower tractors and the New Holland's new TS-A Series tractor – launched in September 2003 – is well-placed to further grow market share in this important power range. The TS125A Ultra and TS135A Ultra models represent a new generation of tractor technology and they have already been widely praised by owners.
The TS-A Series starts at 100hp and replaced the extremely popular TS models. Like their larger stablemates, they have many new features and the UK, Basildon-built, units are meeting a healthy customer demand.
It would be wrong, however, to assume that all New Holland's focus is on the large tractor market, indeed sales of tractors of less than 100hp are regarded as the key to the brand's success. The small to medium horsepower ranges cater for a wide range of users and benefit from the technology and know-how developed for the larger tractors.
This strategy has reaped rewards as sales in the 45-70hp and 71-95hp ranges have also turned in significant sales increases in 2003.
Combine sales were also up during the 2003 season, further building on a large gain in 2002. Sales are being driven by New Holland's innovative and stylish CX and CR Series launched in 2001 and 2002 respectively.
Testament to CNH's continued investment in the brand is growing recognition for technical innovation.
The TS-A proved a winner at agricultural fairs across Europe, being named Tractor of the Year 2004 in the medium-low power tractor class at Agritechnica and designated Golden Tractor for Design by a jury of journalists from 14 of the main European agricultural titles.
New Holland also won a Gold medal at Agritechnica for its innovative two-rotor threshing and separating system and ASD: Advanced Stone Detection system on the CR combine range. It also picked up two Silver Medals: one was for the TS-A's groundbreaking Fast SteerTM system, while the CS combine range picked up the other for its Opti-ThreshTM system.
The judges of the 2003 EIMA Awards for Innovation also recognised New Holland's products in their awards, again singling out the TS-A tractor range for its Fast SteerTM system.
"We're really pleased with how New Holland performed last year and experience so far in 2004 suggests that the market is continuing to be buoyant," said the Business Director for UK and the Republic of Ireland, Paul Kelley.
"We see a definite trend of customers with a far greater business focus basing their machinery purchase decisions on clearly defined needs," he added. "They are keenly aware of products and their capabilities, and dealer support is also high among their priorities."
Mr Kelley feels his upbeat market outlook for this year is justified: "The position of Sterling against the Euro and the fact that it is remaining relatively stable; better off-farm prices; and the indications that interest rates will only increase slightly are all good for the machinery industry," he said.
He tempered this with the recognition that farmers will be taking the opportunity to restructure their businesses to put themselves on a stronger financial base and added: "This, combined with the fact that prices of many farm inputs are increasing, means it's clear that not all the extra income will feed towards machinery purchases.
"Business in 2004 will remain extremely competitive but, judging by our results for 2003, New Holland is making good gains.
Our products are at the forefront of technology and productivity, supported by a top-class dealer network. This is what our customers want."
