Tata Ace Mini-truck Reaches 2 Million Vehicle Milestone

Tata Motors Tata Ace Mega

The Tata Ace Mega is one variant of the popular mini-truck from Tata Motors.

Tata Motors of India recently announced that the 2 millionth Tata Ace mini-truck had been sold. The company reached the milestone in 12 years. The Tata Ace is popular in India and other Southeast Asia countries where mini-trucks and a host of other small vehicles are used for “last mile” transportation in a spoke and hub system. According to Tata management the company controls 65% of the mini-truck market. Other players in the market include Mahindra with their Jeeto vehicle and Piaggio with their Porter 700.

The Tata Ace platform has grown into over a dozen offerings since being launched in 2005. The Tata Ace family includes brands like Ace, Zip, Mega and Mint for cargo transport and Magic, Mantra and Iris for passenger transport. The vehicles come in a range of engine power, engine type and body configurations to fit a wide spectrum of end-use applications in urban to rural settings. For example they offer the Super Ace Mint with a suction machine for sewage and manhole cleaning and other models are specifically designed for use as food trucks. Small scale transporters and entrepreneurs are the main target customers for these vehicles.

Mini-trucks are not as popular in the United States, in part, because the do not meet safety and emissions regulations for on road use. There are about a dozen states that allow them limited access to roads with a speed restriction typically in the 25 mph to 35 mph range. They are more popular in some farming communities where they have served as a utility vehicle for use off-road or on road moving between fields. To a large degree the UTV has functionally become the US version of the mini-truck.   Learn more: Tatamotors.com

Marc Cesare, Smallvehicleresource.com

Textron Recalls Arctic Cat Wildcat Trail & Sport UTVs

2014 Arctic Cat Wildcat Trail

This 2014 Arctic Cat Wildcat Trail is part of the recall.

Textron Specialized Vehicles, which acquired Arctic Cat earlier this year, has announced the recall of model year 2014 to 2017 Arctic Cat Wildcat Trail side-by-sides and model year 2015 to 2017 Arctic Cat Wildcat Sport side-by-sides. Heat from the vehicle’s exhaust can melt the plastic panels behind the operator and passenger seats and pose a fire hazard. The recall involves approximately 14,100 units in the US, 5,300 in Canada and 100 in Mexico of the two seat side-by-sides. Consumers should stop using the vehicles and contact Arctic Cat to schedule a free repair.

This is a large recall compared to what we usually see in the market, which is typically several thousand and less frequently more than 10,000 vehicles. Textron only recently acquired Arctic Cat and is still integrating the business into their Textron Specialized Vehicles division. They are keeping the Arctic Cat name for the Wildcat products under their newly formed Textron Off Road brand. Management is probably not thrilled with this unanticipated and added expense related to the acquisition.

The following are the recall details from the Consumer Product Safety Commission.

Name of product:  Arctic Cat recreational off-highway vehicles (ROVs)
Hazard:  Heat from the exhaust can melt the plastic panels behind the operator and passenger seat, posing a fire hazard.
Recall date:  October 27, 2017
Recall number:  18-017
Consumer Contact:  Arctic Cat at 800-279-6851 from 8 a.m. to 5 p.m. CT Monday through Friday or online at www.arcticcat.com and click on Product Recall for more information.

 

Recall Details

Description:  This recall involves all model year 2014 through 2017 Wildcat Trail and 2015 through 2017 Wildcat Sport models of Arctic Cat ROVs. The recalled vehicles were sold in multiple colors, have four wheels and side-by-side seating for two people. “Wildcat Trail” or “Wildcat Sport” is printed on each side of the vehicle.

Remedy:  Consumers should immediately stop using the recalled ROVs and contact Arctic Cat to schedule a free repair. Arctic Cat is contacting all known purchasers directly. If you need assistance locating an authorized dealer to conduct this repair, contact Arctic Cat.

Incidents/Injuries:  The firm has received 444 reports of the plastic panels melting, with five resulting in fires. No injuries have been reported.

Sold At:  Arctic Cat dealers nationwide from December 2013 through August 2017 for between $10,500 and $19,500.

Manufacturer(s):  Arctic Cat Inc., of Thief River Falls, Minn., a subsidiary of Textron Specialized Vehicles, of Augusta, Ga.

Manufactured In:  U.S.

Units:  About 14,100 (In addition, 5,300 were sold in Canada and 100 in Mexico)

Learn more:  CPSC.gov

University Reveals aCar: An Electric Utility Vehicle For Africa

aCar electric utility vehicle

A frontal view of the aCar on test in Ghana,

aCar electric utility vehicle

The aCar was developed by the  Technical University of Munich.

Technical University of Munich (TUM) scientists have introduced a prototype electric powered utility vehicle designed for use in rural Africa. Four years in development, the prototype is called aCar, as in “all-rounder”, and was developed specifically to meet the needs of sub-Saharan countries.

The aCar is a cross between a UTV and a small truck, and is off-road capable and can transport heavy loads with a total load capacity of 1 ton. The aCar has four-wheel drive and electric powered to minimize maintenance, provide plenty of torque and be environmentally friendly. The battery can also be used to power winch or as an energy source. The modular design for the rear of the vehicle provides versatility to carry cargo, passengers, a mobile physicians office, a water treatment solution or other functionality. Other key specifications and features include:

  • 20 kW battery capacity
  • 48-volt system
  • 80 km range
  • Top speed:  60 km/h
  • 7 hour recharging time from 220 volt household socket
  • Optional solar sheets
  • Price: under 10,000 euros
  • 3.7m x 1.5 m x 2.1 m
  • Seating capacity:  2
  • Simple production and low manufacturing costs

The vehicle was tested in Ghana for a month and was well received by locals. The aCar will first be produced in Europe to understand and optimize production, but the goal is to move production and eventually component manufacturing to Africa.

Learn more:  TUM.de

This project highlights some of the obstacles in creating a capable and affordable vehicle for customers in developing countries. Not only does such  vehicle have to be affordable to purchase but also to operate. One might think that a large UTV manufacturer could just export their lower priced models. However, the complexity of the design, the need for a reliable fuel supply, and the additional cost of shipping the vehicle all create obstacles.

In terms of design, complexity invites potential for more breakdowns and requires a robust supply chain for parts and more technical expertise for repairs. A simple but robust design alleviates these issues. A leading UTV manufacturer would likely have to develop an entirely different platform for this market.

The modular approach for the aCar is different from the accessories and options approach in the UTV market. Developing modules for specific applications provides some flexibility but, in comparison to the UTV market, limits the level of customization that can be achieved. On the other hand, developing the modules and the requisite supply chain, is likely more cost effective than developing and supplying a wide range of accessories and options in areas where a dealer network will be very limited. A next step in this project may be to look at how the modular design approach can best balance cost, supply and complexity issues with vehicle customization to increase productivity and value.

Marc cesare, Smallvehicleresource.com

Textron Off Road Announces 2018 Models

Textron Off Road Logo

Textron Off Road announced their 2018 UTV lineup, the first since Textron Off Road replaced the Arctic Cat name for UTVs and ATVs. The 2018 UTV lineup includes 15 different models including Wildcat, Stampede, Recoil and Prowler nameplates. While Textron Off Road kept many of the Wildcat offerings they have ditched the HDX and most of the Prowler offerings which had previously been sold under the Arctic Cat name. They also dropped their non-EPS base model for their Stampede lineup and changed the names of the other Stampede models.

  • Stampede EPS is now Stampede
  • Stampede EPS+ is now Stampede X
  • Stampede XTR EPS is now Stampede 4
  • Stampede XTR EPS+ is now Stampede 4X

Here is a summary of the 2018 lineup:

  • Recreational UTVs:  Wildcat X, Wildcat X LTD, Wildcat Trail, Wildcat Trail XT, Wildcat Trail LTD, Wildcat Sport XT, Wildcat Sport LTD, Wildcat 4X LTD
  • Crossover UTVs:  Stampede X, Stampede 4X, Stampede, Stampede 4
  • Electric UTVs:  Recoil, Recoil iS
  • Work/Entry Level UTV:  Prowler 500

The lineup is quite broad covering a range of segments from high performance to sport recreational riding, trail riding, 4-passenger and crew, electric powered, work, crossover and even entry level general utility with the Prowler 500. The following are key specs for some of the 2018 models:

Textron Off Road Prowler 500

The 2018 Prowler 500 from Textron Off Road.

Prowler 500

  • 443cc liquid-cooled 4-stroke, twin cylinder single overhead cam engine with EFI
  • On-Demand 4WD and Duramatic CVT
  • Double A-arm front and rear suspension with 7.5″ of travel
  • 10″ of ground clearance
  • 25″ Maxxis tires on steel wheels
  • 500 lb. dump bed capacity
  • 1,500 lb. towing capacity
  • Halogen low/high headlights and taillights
  • Door nets and 3-point seatbelts
  • 2-passenger
  • MSRP $8,499
Textron Off Road Wildcat X LTD

The 2018 Wildcat X LTD now under the Textron Off Road brand.

Wildcat X LTD

  • 951cc liquid-cooled 4-stroke, V-twin cylinder single overhead cam engine with EFI’
  • Electric 2/4WD with 4WD lock
  • Rapid response clutches
  • EPS
  • Double A-arm front suspension and 5-link rear suspension with Elka Stage 5 shocks with dual speed compression adjustment and rebound adjustment
  • 17″/18″ of front/rear suspension travel
  • 13″ of ground clearance
  • 27″ ITP Blackwater Evolution tires and aluminum ITP beadlock wheels
  • 300 lb. cargo box capacity
  • Dual LED headlights, brake lights and taillights
  • Half doors
  • 3-point seat belts and seat belt rev limiter
  • MSRP $18,499
Textron Off Road Stampede X

The 2018 Textron Off Road Stampede X previously known as Stampede EPS+.

Stampede X

  • 80 hp, 846cc liquid-cooled 4-stroke, twin cylinder single overhead cam engine with EFI
  • On-Demand AWD with automatic locking front differential and selectable locking rear differential
  • EPS
  • Double A-arm suspension front and rear with Performance shocks
  • 9.5″/10.5″ of front/rear suspension travel
  • 11.25″ of ground clearance
  • 27″ Maxxis Bighorn 2.0 tires and aluminum alloy wheels
  • 600 lb. dump bed capacity
  • 2,000 lb. towing capacity
  • Standard doors
  • Front steel brush guard
  • LCD display
  • USB outlet
  • Low/high beam headlights
  • Extended cab storage space
  • 3-point seat belts and seat belt rev limiter
  • 2-passenger
  • MSRP $14,799

While the Textron Off Road brand has absorbed the Arctic Cat brand, production for the Stampede models is being integrated into existing Arctic Cat production facilities. The Stampede model production is moving to the Thief Falls River, MN facility to join the Wildcat and Prowler production. Stampede engine production will move from Germany to St. Cloud, MN, which produced engines for Arctic Cat UTVs, ATVs and snowmobiles.

Current owners of Arctic Cat side-by-sides and ATVs can continue to visit their Arctic Cat dealer for vehicle service, parts and accessories.

Learn more:  Textronoffroad.com

 

Mahindra To Build UTVs in the US

The Mahindra mPact XTV 1000 L utility vehicle is one of six models previously developed by the company in partnership with Intimidator, Inc.

Mahindra is planning on launching an off-road utility vehicle targeting farmers and hunters, and will build it in the US. In an interview by Barron’s, Mahindra & Mahindra’s CEO Pawan Goenka covered a range of topics including a new manufacturing plant in Detroit. The first product produced by the plant will be off-road utility vehicles.

In April 2015 Mahindra announced a partnership with Intimidator Inc. based in Arkansas to develop and manufacture Mahindra’s current mPact lineup of six UTVs. This latest interview indicates that moving forward they will be developing and manufacturing their UTVs themselves. According to the CEO Mahindra currently has about 540 dealers in the US who sell Mahindra’s tractors. While the brand is not necessarily a household name, it is not an obscure brand either in the farming market.

Comment:  This marks a more serious commitment to the UTV market. While some companies have developed partnerships to add UTVs to their product lineup, they have not had intentions of moving into manufacturing themselves. These partnerships have been a joining of complementary competencies and assets. Usually one company has the distribution channel while the other has the expertise and resources to develop the UTVs. In Mahindra’s case they likely used their partnership with Intimidator to test the UTV market in the US before making a more substantial commitment. They will offer some more competition for companies like Kubota, John Deere, Polaris and even Can Am which has been targeting the farm/hunting market segment lately as well. The investment shows that the UTV market remains highly competitive, but companies still view it as a growth market.

Marc Cesare, Smallvehicleresource.com

Eicher Polaris Changes Multix Marketing Strategy

Eicher Polaris Multix

The Multix utility vehicle, the first offering from the Eicher-Polaris joint venture.

Eicher Polaris has made a significant change in the marketing strategy for their Multix multi-purpose utility vehicle. Launched in 2015, the Multix was designed to be versatile and transformable from moving goods to carrying the family to generating electricity with the X-Port feature.

Based on extensive market research the original marketing plan targeted entrepreneurs in rural areas and small towns. The entrepreneur could use the vehicle for business during the week, for family outings on the weekend and even provide electricity in areas where the electrical grid can be unreliable. However, the product has not taken off as management expected, although the potential market is deemed quite large. The company points to more conservative rural people not being as quick to adopt such an innovative product.

Therefore, Eicher Polaris is changing course and now focusing on more urban areas. To that end the company is expanding from 77 to 100 dealerships with most of the new openings in metro areas. The hope is that metro locations will provide more exposure for the Multix to a wider range of end users in the urban environment. Management provides examples of end users that can conduct “business on wheels” with the Multix like laundry operators who can use the X-Port for ironing and carpenters to power tools.

Learn more: thehindubusinessline.com

Comment: The versatility of the vehicle may make it a success in the end. In the metro areas, rather than fitting the vehicle to a particular type of user, many different type of users can adapt the Multix to their needs. In the end the Multix may be used for a number of different end use applications that the company never even considered when developing the vehicle. The key will be exposing the vehicle to as many different end users as possible, and helping them adapt the vehicle to their needs. The next step may be to develop a broader range of accessories to cater to specific applciations.

Marc Cesare, Smallvehicleresource.com

Eicher-Polaris Adjusting Multix Strategy

Eicher Polaris Multix

The Multix utility vehicle, the first offering from the Eicher-Polaris joint venture.

Eicher-Polaris, the Indian joint venture between Eicher Motors and Polaris, is adjusting their Multix marketing strategy to boost a lackluster rollout, according to reports from the Economic Times of India. The less than expected performance has been mentioned in recent quarterly earnings calls with analysts. Eicher-Polaris has already boosted the Multix’s power with a more powerful and BS IV compliant engine. The company plans on doubling their dealer network to 150 locations over the next six months and looks to more aggressively market this new concept vehicle. Additional resources are being allocated to marketing strategy consultants and customer research to inform future marketing initiatives.

The joint venture’s management has moved back their breakeven time frame by up to two years and may start producing ATVs at the Multix plant to help in that regard. The plant, located in Jaipur, has a capacity to produce 60,000 vehicles annually, so ATVs could fill some of that capacity until the Multix can develop some momentum.

This isn’t the first time Polaris has had difficulties in markets outside of the powersports arena. They have had some challenges along the way with their Bobcat partnership, Brutus line sold to commercial and government markets, as well as, some issues with traditional Polaris dealers trying to sell GEMs after the brand was first acquired.

While one might expect the past success of Polaris might produce different results, these difficulties are not completely unexpected. Selling to commercial and government customers is different than selling a new off-road vehicle to a powersport customer. With the latter, Polaris’ established presence in the market facilitates a build it and they will come approach, and the company has had years to hone their PR and marketing campaigns for a market often eager for the next best thing. Literally, dealers can wait for customers to walk through their doors,

In the commercial/government market customers are often constrained by budgets and budgetary calendars, and a dealer has to be pro-active. The successful dealers I have met in this market all aggressively make on site visits and demo vehicles for potential customers, as well as, attend trade shows, exhibitions and other venues where potential customers congregate. This is essentially a different type of dealer than the powersports dealer. This is not to say that Eicher-Polaris and Polaris won’t be successful in these markets. Despite these hurdles, Polaris has continued to grow their commercial business and their recent acquisition of Taylor-Dunn shows they are committed to a long-term strategy. In fact, overcoming these hurdles is building an institutional knowledge of these markets that should improve help them moving forward.

Marc Cesare, Smallvehicleresource.com

How Will Textron’s Arctic Cat Acquisition Impact The STOV Market

Textron E-Z-GO Logo

Textron’s recent acquisition of Arctic Cat raises some interesting questions about the acquisition itself and how other companies in the market may react. In particular, what does the acquisition mean for Club Car.

One question is whether or not Textron will continue investing in the Bad Boy Off-Road brand. Except for the electric powered Bad Boy Off-Road UTVs the brand’s product offerings are redundant given the more popular Arctic Cat product lineup. One can argue that the dealer networks are sufficiently different that the brands can effectively reach different customer bases and not cannibalize each other’s sales.  A quick perusal of the Bad Boy dealer network indicates that most of their dealer s are golf car related with some power sports dealers. Moving forward, Bad Boy how much resources are put into product development, and what type of vehicles they develop should indicate the direction the brand will take in the context of Arctic Cat acquisition.

Another issue is the potential clash of corporate cultures between Textron Specialized Vehicles and Arctic Cat. Textron is a large conglomerate with over $13 billion in sales annually and a particular corporate culture while Arctic Cat is a much smaller company coming out of a powersports background. How well these companies will mesh will be interesting to see. Keeping Arctic Cat as a stand alone operating unit can mitigate any cultural problems to a certain degree. However, any future financial difficulties at Arctic Cat could generate more intrusion from Textron management regarding Arctic Cat operations.

Club Car is targeting the commercial market with the Carryall 700 and other vehicles.

A more intriguing question is how the acquisition of Arctic Cat might impact Club Car, which is now the only large stand alone fleet golf car manufacturer. While Yamaha Golf Cars are separate from their UTV and ATVs business, they are both part of their Power Products division. Similarly Textron has developed their Textron Specialty Vehicles division that combines a range of small, task-oriented vehicles from airport tugs, to fleet golf cars to off-road ATVs and UTVs.

Ingersoll-Rand and Club Car has taken a decidedly different approach. Rather than collecting other categories of vehicles, they have opted to focus on building out the sales of golf cars for personal/golf use and commercial oriented utility vehicles that are based off of their golf car platform. Management confirmed this approach when asked about the Arctic Cat acquisition during their recent fourth quarter earnings call.  According to recent financial results Club Car has been successful with positive growth in the commercial/utility segment while the fleet side continues to lag. However, the business is relatively small compared to the overall size of the company which had $13.5 billion in sales in 2016, and Club Car is part of their smaller Industrial segment.

This raises the possibility that Club Car may be an inviting candidate for divestiture. But who might be interested in buying Club Car? One possibility is Honda Motor. They already have a range of motorcycles, ATVs, UTVs and scooters. An acquisition of Club Car could further diversify their vehicle portfolio. In addition, golf is a popular sport in Japan so there could be some degree of personal affinity among the management towards owning a leading golf car company. Club Car would offer a premium brand and a different distribution channel that might be useful for moving other Honda products. It would also add some electric vehicle expertise to Honda as well as additional global manufacturing capabilities.

Another possibility is Polaris, which has been acquiring small vehicle brands over the past several years. Polaris tends to acquire leading brands in a particular segment and many consider Club Car to be the leading golf car brand. Besides the premium brand, Club Car would bring some other positives to the table:

  • Global brand and distribution
  • China based manufacturing facilities as well as Southeast US facilities and supplier network not far from Polaris’ new Huntsville, AL facility
  • Large volume of electric vehicle sales that can be used spread costs of new battery and electric powertrain development.
  • Entry into the golf car segment
  • Largely separate distribution channel from existing products but similar enough to cross-sell some other Polaris brands
  • Good presence in commercial small vehicle market that Polaris has been targeting

The one drawback is that, from previous presentations, Polaris management considers the golf car segment a low growth segment. In large part this is due to the stagnant fleet golf car market which is the major portion of the golf car segment. However, E-Z-GO’s recent introduction of lithium battery powered fleet golf cars represents a potentially significant shift in the market. If lithium battery golf cars can disrupt the fleet market, this might create a more appealing market to Polaris. Providing an opportunity to leverage their expertise in electric vehicles, increase electric vehicle unit volume to lower costs and find a growth avenue in an otherwise stagnant fleet market. Despite recent headwinds from recall issues, Polaris still has the financial resources for such an acquisition. It will be interesting to see if they move in this direction.

Marc Cesare, Smallvehicleresource.com

Textron Acquires Arctic Cat

Marc Cesare, Smallvehicleresource.com

Textron Specialized Vehicles will now compete in the recreational side-by-side market with vehicles like the 2017 Wildcat X from Arctic Cat with RG Pro suspension.

Textron is buying Arctic Cat for $247 million. Arctic Cat will become part of Textron’s Specialized Vehicle business and Textron’s management stated that the current manufacturing, distribution and operational facilities will be maintained. Arctic Cat employs about 1,600 people in production and management facilities mostly in Minnesota. Textron management remarked that the acquisition will allow for “…more aggressive investment in product development, dealer networks, marketing and customer service.” For the full fiscal year ended March 31, 2016, Arctic Cat reported a net loss of $9.2 million on net sales of $632.9 million. Sales are roughly split between ATVs/UTVs and snowmobiles. For fiscal year 2017 they were expecting similar sales.

This acquisition by Textron makes them much more of a direct competitor with Polaris. While Polaris has been expanding into more work and transportation related products with acquisitions of GEM, Aixam, Goupil and Taylor-Dunn, which puts it in direct competition with Textron’s Cushman, TUG and E-Z-GO vehicles, Textron has been expanding with their roll-out of the Bad Boy Off-Road brand of UTVs and ATVs. This acquisition significantly adds to the products and markets where they will be competing head to head.

This deal should provide the Arctic Cat brand with a lot more financial muscle to expand their dealer network and develop new products. For Textron there are a number of benefits:

  • In Arctic Cat they acquire a well established brand.
  • They acquire a power sports dealer network which is distinctly different then what they currently have.
  • They expand their reach in the UTV market, not only in terms of sales volume and distribution, but in the pure recreational market segment
  • They add a completely new type of vehicle to their portfolio with snowmobiles
  • They add geographic diversity to their manufacturing facility portfolio

It will be interesting to see what happens with the Bad Boy Off-Road brand. There is some overlap of product lines with Arctic Cat. A quick perusal of the Bad BoyOff-Road dealer network reveals that many or even most of the dealers are golf car related dealers with some power sports dealers. They could continue to develop the brand or fold some of the products into the Arctic Cat brand. Perhaps, lower than expected success of the Bad Boy Off-Road launch was one reason for acquiring Arctic Cat. Why spend a large amount of resources building a new brand in a very crowded market with no guarantee of success when they can acquire a well established brand such as Arctic Cat.

Learn more:  Arctic Cat

Should Autocycles Be Next For STOV Manufacturers

Marc Cesare, Smallvehicleresource.com

Arcimoto SRK

The electric powered Arcimoto SRK is expected to be available later this year.

I have come across a number of articles recently focusing on autocycles and I thought this might be a potential product development direction for STOV manufacturers.

First, what is an autocycle? It is basically a three-wheeled vehicle such as the Slingshot by Polaris, or offerings from start ups such as Elio Motors and Arcimoto. There is no standard definition for an autocycle in the US or other countries. In the US, an autocycle is typically classified as a motorcycle, although not always, as Polaris discovered with their Slingshot. They have had to work with some states to develop legislation to allow their vehicles on the road. (See how the classification for the Slingshot varies by state.)

The benefit of being classified as a motorcycle is that the vehicle does not have to conform to more expensive automobile safety standards. This benefit is key to providing STOV manufacturers with a new product opportunity. In particular, I believe Polaris and the golf car manufacturers are well positioned to produce a more practical neighborhood electric vehicle that can provide a good value proposition in relation to street legal golf cars (new or used), low speed vehicles and lower priced highway capable cars.

Now Polaris already has the Slingshot, but this is more of a recreational vehicle designed for those interested in a motorcycle like experience with a greater sense of safety and requiring less driving skill. The Slingshot is highway capable, features a gas engine and pricing starts around $22,000. The not yet in production Elio Motors autocycle is also gas powered, highway capable and has a base price of $7,300. The electric powered Arcimoto SRK is expected to be available this year, has a top speed of 80 mph and starts at $12,000 for the 12kWh model which provides a 70 mile range. Like Slingshot, the Elio and SRK provide seating for two but they are placed front to back rather than side to side as in the Slingshot. All three feature two wheels up front and one in the rear.

While all three of these vehicles are capable of highway speeds, I propose that there is a real market opportunity for a medium speed vehicle (MSV). The medium speed, say up to 40-45 mph, would make the vehicles more practical to use for personal transport than golf cars or LSVs which top out at 19-25 mph. STOV manufacturers have pushed for a MSV designation but NHTSA has not been willing to budge on the costly safety standards for four-wheeled vehicles. This is why the motorcycle/autocycle classification is critical to this opportunity. A MSV autocycle would be a more viable second vehicle for many households and a more versatile neighborhood vehicle for those in gated or retirement communities.

The vehicle should also be electric powered to maximize the environmental benefits and also take advantage of electric motorcycle incentives where available. An electric autocycle would provide a significantly less expensive electric vehicle option to green consumers than the currently available electric cars. A MSV would also require a smaller battery pack than a highway capable electric autocycle, further reducing costs. Of course, a highway capable option could be made available but that would start driving up the costs.

Besides the aforementioned startups, who is positioned to develop these type of vehicles? Polaris is an obvious choice. They already have experience designing, engineering and producing an autocycle and they are innovators. They also have been acquiring electric drivetrain technology (Brammo) and electric vehicle brands such as GEM, Goupil and Taylor-Dunn. It is a vehicle that could potentially fit nicely into their portfolio of the brands that are sold internationally. The biggest challenge for Polaris would be distribution. A MSV autocycle would probably not be a good fit for their powersports dealers, as the customers would be more transportation than recreation oriented. Their brands such as Goupil, Taylor-Dunn and even GEM are geared more towards the commercial customer. Polaris might have to partner with another company to access the right distribution channels.

This brings us to the golf car manufacturers. They have the expertise in developing and selling electric vehicles, but not necessarily the three-wheeled variety and have been more focused on lead acid battery packs. One could argue that they also haven’t been that innovative. They do however have the right distribution network. Their customers are already coming to them for personal transportation solutions.

A MSV autocycle could find a home in Textron’s (maker of E-Z-GO) Specialty Vehicle division which encompasses a wide range of small, task-oriented vehicles. They have also been striking out into new territory with new ATV and UTV products under the Bad Boy Off-road brand. Another option is Yamaha Golf Car, although they are the smallest of the big three manufacturers. This leaves Club Car. As a subsidiary of Ingersoll-Rand they certainly have the financial wherewithal to develop a vehicle on their own, and they may be the best fit for a partnership with Polaris. Unlike Yamaha and Textron they do not compete directly with Polaris in the recreational UTV space. They are also considered by many to be the highest quality brand of the three and have over 600 distributors, dealers and factory branch locations.

It will be interesting to see if the autocycles from Elio and Arcimoto prove to be popular and encourage other manufacturers to join the fray.

Learn more:  Arcimoto.com

Learn more:  Eliomotors.com