Category Archives: globalization

Renault Offers Twizy Cargo for Commercial Use

Posted on by
Reply

Renault’s Twizy Cargo for urban commercial use

France-based Renault is modifying their commuter vehicle, the Twizy Z.E., to be used as a small commercial vehicle for cargo transport. Whereas the Twizy Z.E. features two seats with the passenger behind the driver, the Twizy Cargo will be a one-seater with cargo space. Both are electric powered vehicles. With 6.53 cubic feet of cargo space and a 165 lb payload the vehicle is best used for small package delivery in urban environments. The top speed of the Twizy 45 Cargo is limited to 27 mph which means in some European countries a driver doesn’t need a license. The Twizy 80 Cargo has a top speed of 52 mph and requires a licensed driver.  Durability issues with the vehicle raise concerns about the ability of the vehicle to withstand more demanding commercial usage. Learn more:  Plugincars.com

Comment:  Europe and some other regions have relatively more relaxed vehicle regulations than the US when it comes to smaller vehicles such as the Twizy.  With their older cities and narrower streets, they arguably have a greater need for them as well. Thus, the market and regulatory bodies have responded with a variety of vehicles and vehicle classifications to meet the market needs. Europe will continue to be a more fertile ground than the US for these low speed vehicles in the foreseeable future unless US regulations change. This is one reason why Polaris in recent years has made acquisitions in the European market and sees potential for their GEM brand internationally.

Polaris Forging Ahead in the Indian Market

Posted on by
Reply

Managing Director Pankaj Dubey of Polaris India

An Indian vehicle website recently posted an interview with Mr. Pankaj Dubey, Managing Director of Polaris India Pvt. Ltd. in which they discussed Polaris’s activities in the Indian market. Polaris entered the market in 2011 and have undertaken a number of efforts to grow the business. Here is a summary of the interview highlights and key marketing initiatives.

  • Participating in off-road racing events
  • Partnering with entrepreneurs to set up 16 Polaris Experience Zones in Indian cities to expose more people to off-roading
  • Their top five markets are Delhi, Mumbai, Bangalore, Chennai and Hyderabad
  • Efforts to market to police, parks departments, fire departments, etc are progressing
  • The product offerings in India include ATVs, UTVs, snowmobiles, and the Indian and Victory Motorcycles are likely to be added but not for at least a year
  • There are currently 14 Polaris dealerships with plans to reach 50 by year end 2016
  • The company is lobbying government agencies to allow more road access for ATVs and UTVs

Learn more:  Cardekho.com

Comment:  Increasing international sales has been a key strategic initiative for Polaris so it is not surprising that they are looking to expand aggressively in the next few years in India. In general foreign companies are eyeing the country’s growing middle class to power spending on goods and services. While some estimates put the middle class at about 300 million people, the upper range of this segment is where most of the spending is likely to come and that translates into about 50 million consumers. The middle class is expected to grow strongly in the coming decades. Learn more:  NYTimes.com

Miles Electric Vehicles Files for Bankruptcy

Posted on by
Reply

Miles Electric Vehicle’s ZX40S

Miles Electric Vehicles has filed for chapter 11 bankruptcy. The company listed assets estimated between $10 million to $50 million and liabilities estimated between $50 million and $100 million. Established in 2004, Miles produces four LSVs including the ZX40, ZX40S, ZX40S Advanced Design and ZX40ST electric truck. The vehicles are manufactured in China. The main market for the company has been commercial, government and university fleets. Learn more:  Inautonews.com

Indian Government Approves Limited Quadricycle Use

Posted on by
Reply
Bajaj Auto RE60

Bajaj Auto’s Quadricycle the RE60

A special inter-ministerial group in India has approved the use of quadricycles for public transport within city limits. The effort has been spearheaded by Bajaj Auto, the leading three-wheeler manufacturer in India. Quadricycles are similar to low-speed vehicles in the US, although they are more likely to be powered by internal combustion engines and operate at slightly higher speeds.  They are already prevalent in Europe. Similar to LSVs in the US, there has been some objection to the quadricycles because they do not have to meet the same safety standards as higher speed autos but share the same roads. In India some of this criticism has come from the manufacturers of higher speed autos. Bajaj Auto management reports that they will beging production of their RE60 quadricycle very soon.

Comment:  This may be a potential win for Polaris in the long term. They recently purchased a leading quadricycle manufacturer in Europe, Aixam Mega, and have also entered the Indian market with their UTVs and GEM vehicles. A quadricycle product line could be a nice addition for their dealer network, especially if their use is allowed to expand beyond the current limitations.

Another consideration is whether this is the beginning of a trend towards wider quadricycle use around the world. And if it is, does it put pressure on US regulatory bodies to approve the use of medium speed vehicles and/or wider use of low speed vehicles?

Learn more:  Economictimes.com

Indian Light Commercial Vehicle Market Slows

Posted on by
1

The Light Commercial Vehicle (LCV) market in India is experiencing a slowdown.  Industry experts point to expensive loans, reduced economic activity and challenging freight rates in several sub-markets as the reasons. The mini-trucks which can carry up to two tons of goods has seen growth fall. According to the manufacturer’s trade association, “From an average 40,000 units a month last financial year, sales of goods-carrying light commercial vehicles (LCVs) fell have fallen to 33,721 units in April; growth slowed from 16 per cent last year to three per cent in April.” The segment’s more recent growth had attracted more competition and new models with the main manufacturers being Tata Motors with their Ace models, Mahindra & Mahindra’s Maxximo and Ashok Leyland’s Dost .  Learn more:  Business-standard.com

Highlights from the Polaris Earnings Call – Q1 2013

Posted on by
Reply

The following are the highlights of the Polaris earnings call for their first quarter 2013 earnings report as it relates to the STOV market.

  • Total sales for the first quarter increased 11% to a record $754.9 million
  • First quarter net income increased 26% to $75.5 million
  • Gross profit margins were up a modest 10 basis points to 29%
  • Full year sales expected to be up 12% to 15% over 2012.
  • Polaris’ first quarter Off-Road Vehicle (ORV) revenue increased 7% driven by side-by-side sales.
  • In the first quarter consumer demand for the RANGER 900XP outpaced all other ORVs in the industry.
  • Polaris gained market share in both ATVs and side-by-sides.
  • ATVs down low single digits and for industry as well
  • Polaris side-by-side retail grew mid-single digits in an industry estimated to grow low single digits.
  • The new RZR XP 900 Jagged X has been a hit with consumers
  • Major strategic initiatives included launch of Brutus commercial line, acquisition of Aixam and start of plant construction in Poland
  • Brutus line will be sold through dedicated new Polaris commercial channel that already includes 400 dealers
  • Initial orders for both the Brutus product and the attachment have been better than are than expected.
  • Small vehicle business consisting of GEM and Goupil grew double digits
  • GEM and Goupil both had good quarters, as GEM retail more than doubled in its best first quarter since 2008, while Goupil retail orders were up about 20%, significantly outperforming the European economy.

Looking Forward

  • Sales of Off-Road Vehicles are expected to increase in the 8% to 10% range, with retail sales of side-by-side vehicles and ATVs outpacing the overall market in North America and internationally.
  • Management expects to increase ORV market share in 2013 although at a more moderate rate than the past 3 years.
  • Management optimistic about new model introductions for model year 2014
  • Poland facility to be online in the 2nd half 2014 mainly for producing ATVs for the European market with some side-by-side capability as well.
  • Management expects to realize sourcing and engineering synergies between Goupil, Aixam and Gem
  • Goal is to decrease the delivery time of for side-by-side products to dealers from 6 weeks down to 4 weeks

Learn more:  Seekingalpha.com (earnings call transcript)

LSV Manufacturer GreenTech Automotive to Make Highway Capable EV

Posted on by
Reply

GreenTech Automotive plans to produce a highway capable electric sedan

GreenTech Automotive (GTA), the Virginia-based manufacturer of the MyCar LSV, is partnering with China-based JAC to build a 5-person electric powered sedan. JAC’s Rejoice platform will be used for the vehicle which will likely feature a 19 Kwh lithium battery power source and have a range of over 100 miles. According to executives they have distribution agreements in place to sell 30,000 vehicles over three years. Vehicle assembly will be carried out in Mississippi at the same facility as the MyCar with a dedicated new facility for the sedan in the plans. Production is scheduled to begin in late 2013. There is no information on the pricing of the vehicle.

Comment:  This is another LSV manufacturer that is trying to make the move from producing LSVs to producing highway capable EVs. None have met with any great success so far. From what we’ve seen, the sales of the MyCar has not met the hype about the company. Given the sales levels of the Nissan Leaf which is produced by a well-established company with an extensive distribution network, 30,000 units in three years for this sedan appears to be very optimistic.

Polaris Acquires Small Vehicle Manufacturer Aixam Mega

Posted on by
Reply

Aixam Quadricycle

Aixam Mega Utility Truck

Polaris Industries announced the acquisition of Aixam Mega, a leading manufacturer of quadricycles and light commercial vehicles based in France. The acquisition adds to the company’s portfolio of small, task-oriented vehicles which includes GEM LSVs and Goupil commercial vehicles and increases their footprint in Europe as management targets international markets for future growth. In addition, the acquisition puts Polaris in a strong position in the personal transportation segment of the small vehicle market in Europe while adding to their commercial market presence.

Quadricycles are a class of vehicles characterized by limits on vehicle weight, top speed and engine power. Light quadricycles have a top speed of 45 kph and can be driven without a license in Europe depending on the regulations of the individual country. In France they have a classification similar to mopeds. There is also a heavy quadricycle classification that requires a license to drive. Aixam Mega has annual sales of approximately $110 million.

Aixam Mega offers a diverse lineup of small vehicles covering personal transportation and commercial vehicles, light and heavy quadricycles and ICE and electric powered vehicles. Their product lines include the Aixam line of quadricycles for personal transportation and their Mega brand of light commercial trucks and vans. They recently launched a new lineup of all electric models for personal transportation. Their Mega utility vehicles feature both diesel and electric powered versions of trucks and vans.

According to company information Aixam Mega is the market leader in Europe selling approximately 10,000 to 12,000 quadricycles of the personal transportation variety annually with about half being sold in France. The company has a network of about 400 dealers throughout Europe and two production facilities in France. Their Mega brand of light commercial trucks and vans are distributed internationally including in the US through Columbia ParCar.  Learn more:  TwinCitiesBusiness

Comment:  The regulations in Europe are more favorable for on-road small personal transportation vehicles than in the US where LSV regulations and road access are more restrictive. It will be interesting to see if Polaris tries to modify and export the Aixam personal transportation line into the US as an LSV. In contrast to many of the current LSV offerings on the market which still have a golf car like styling, the Aixam offers a more traditional automobile styling.  On the other hand, the US LSV market is still largely commercial oriented and the personal transportation segment may be too small for the effort without changes to regulations allowing for higher speeds.

In the commercial segment, the Polaris network of dealers, especially those already offering GEM vehicles, provide an opportunity to expand the US distribution of the Mega commercial vans and trucks. The configurations of the Mega utility trucks are a nice complement to the GEM product offerings and I can envision dealers being able to sell both lines to a customer with a range of small vehicle needs.

 

What’s Cooking on the STOV

Posted on by
Reply

Highlighting some of the many applications for small, task-oriented vehicles:

School Safety Vehicle – Vinemont schools in Alabama purchased a Polaris UTV for safety patrols and driver education classes. For safety patrols the vehicle can access campus areas that their existing patrol cars cannot.  The UTV will also be used in their DUI related sessions of their driver education program. Students will use special goggles that simulate driving while intoxicated while attempting to navigate a set driving course under instructor supervision. Learn more:  Cullmantimes.com

Airport Patrols & Maintenance:  Lambert St. Louis International Airport purchased four electric-powered GEMs to be used in their parking operations for patrols and maintenance. The vehicles will be covering two terminal garages and four long-term lots. The GEMs replaced full-size pick-up trucks. The replacement of pickup trucks is an ongoing trend we are seeing particularly in corporate/college campuses and park settings. Learn more:  Bizjournals.com

Scotland Business Park Switches to Electric Utility Refuse Vehicle:  Hillington Park, a business park in Scotland, is replacing a diesel powered van with a new Alke ATX200E battery-powered utility truck. The vehicle will be used for refuse collection on the campus that is home to 300 companies and 6,700 workers. The new purchase also fits in with their award winning environmental management of the business park.

I thought this example demonstrated a number of aspects of the STOV market. First the STOV market is global. As the STOV market continues to grow it is likely that companies will look for export markets for their vehicles. Second a significant portion of the electric powered segment of the STOV market is driven by “green” or sustainability issues. Third displacement of ICE vehicles is a continuing trend that drives sales for STOVs. Learn more:  Fleetnews.uk.co

Piaggio Updates Vehicles for India LCV Market

Posted on by
Reply

After a not so successful first try, Piaggio Vehicles India, will be taking a second crack at the light commercial vehicle market in India with some updated models. Their current product lineup featuring the Ape Mini and the Ape Truck Plus in the 0.5 and 1 tonne categories respectively will be replaced by the Porter 600 and the Porter 1000 in the next two months.  The Porter 1000 is a 0.75 tonne vehicle and a 1.5 tonne vehicle based on the Porter platform is also on the horizon.

The main competitors in this market are Tata Motors’ Ace Zip and Ace and Mahindra & Mahindra’s Maxximo. According to Piaggio’s According to the Society of Indian Automobile Manufacturers the new vehicles will provide more “power, fuel efficiency, gradability” than the competition and they hope to capture 10% of the market with the new vehicles.  The LCV market grew approximately 14% in the last year according to the Society of Indian Automobile Manufacturers.  Learn more:  Domain-b.com