Can-Am Announces Updates To UTV Lines For 2015

The Can-Am Maverick 1000R X mr with the new digital camo and green manta color scheme and new Fox shocks for 2015.

The Can-Am Maverick 1000R X mr with the new digital camo and green manta color scheme and new Fox shocks for 2015.

The Commander 100 DPS showing off new wheels for 2015.

The Commander 1000 DPS showing off new wheels for 2015.

Earlier this month Can-Am announced updates for their 2015 Commander and Maverick UTV lineups. The updates focus mainly on new wheels and paint/graphic schemes. New 14-inch cast-aluminum wheels will accent the 2015 Commander models, with the Commander 800 DPS and Commander 1000 DPS getting updated silver-colored cast-aluminum wheels for 2015 while the Commander 1000 XT-P will receive updated beadlock wheels.

For paint and graphics updates the Commander 800R and 1000 DPS will have a new option of Light Grey with Can-Am Red graphics while the 2015 Commander 800R XT and Commander 1000 XT each have a painted pearl white finish option. The 1000 XT also offers a new, optional brushed aluminum color with Can-Am red highlights. A new, black-and-orange color scheme will be the sole choice for the Commander 1000 XT-P side-by-side.??The Can-Am Maverick 1000R X mr is offered in the standard painted black-and-yellow X-team finish or the digital camo and manta green finish. Other updates to the lines include a??4,500-pound WARN winch kit with a roller fairlead, wired remote control and integrated remote storage. The winch is designed to compliment all Can-Am side-by-side vehicles with an XT package. ??The Maverick 1000R X mr will feature large-diameter, 47-millimeter aluminum FOX piggyback shocks that are fully adjustable with high- and low-speed compression, rebound and multi-position preload adjustment. Learn more: ??Off-road.com

 

Honda Unveils New 2015 Pioneer 500 Side-by-Side

15_Pioneer500_Red

The new 2015 Pioneer 500 from Honda.

Steering column mounted paddle shifters on honda's Pioneer 500

Steering column mounted paddle shifters on Honda’s Pioneer 500

This month Honda announced their new 2015 Pioneer 500 side-by-side. Marketed as a crossover vehicle good for work duties or trail riding, the Pioneer 500 is a two passenger vehicle featuring a??475cc four-stroke engine and a five-speed gearbox with an electric shift system and steering column mounted paddle shifters. The side-by-side is designed for trail access/use or working in tight confines with a width of only 50 inches, 73.1 inch wheelbase and 13 ft. turning radius. The side-by-side can fit in a full-size pick-up, has 450 lb. payload capacity and nearly 10 inches of ground clearance. With an MSRP of only $8,499 the Pioneer 500 is targeting entry level and price conscious buyers. ??Learn more: ??Honda.com

Comment:?? After several years of not aggressively pursuing the UTV market, Honda now seems to be putting resources behind their efforts as they follow up last year’s introduction of the Pioneer line with a new addition. They are also continuing two trends we have seen in the overall UTV market. First the Pioneer 500 is being positioned as a crossover type vehicle, albeit at the lower price/performance levels. Second, this is a narrow width model designed to provide access to trails for which more traditional UTVs are too wide. We have seen this in higher performance, more recreational riding oriented models from a number of manufacturers but this vehicle is clearly targeting more of a casual trail rider than a high speed trail jockey. Nevertheless, the narrowness of the vehicle could be important for customers in the eastern part of the US where trails are more narrow and/or have narrow gates that restrict access.

Polaris To Offer Non-Pneumatic Tire For Consumer Side-by-Sides

Polaris Non-Pneumatic Tire Technology

Polaris Non-Pneumatic Tire Technology

Polaris will be bringing their non-pneumatic tire technology from the battlefield to the recreational trails and work environments in the second half of 2014. While originally targeting military applications and available since December on a limited number of ATVs, the tires will now be an option on a wider range of vehicles including side-by-sides by the end of the year. The non-pneumatic tires (NPT) consist of a rubber tread similar to a pneumatic tire that surrounds a polymetric web with a honeycomb design. The technology produces a tire with lateral stiffness for less tire roll while cornering and better grip over rocky or rough terrain since the web part of the tire allows the tire to deform while traveling over an obstacle. The main characteristic is that the tire cannot go flat. In testing the tire has withstood 50 caliber bullets and railroad spikes and remained operable for thousands of miles.

While these characteristics obviously appeal to recreational users, Polaris is initially rolling out the technology for work applications since the company has been getting a lot of feedback from that market according to management. Another issue that hinders a quick and broad roll-out of the NPT is that matching a NPT tire to a given vehicle is complicated. The characteristics of the web design, web material, tread design and material and lug pattern must be adjusted for each vehicle and application. The company has received interest from??mining, turf, agriculture, construction and even the aviation markets. Rail industries are also very interested. ??Learn more: ??Powersportsbusines.com

Comment:??This could grow into a nice sized adjacent business for Polaris. It will be difficult for competitors to enter the market. Not only does Polaris own patents for this technology but they are also developing expertise in understanding the complexities of matching different tire characteristics to specific vehicles and end-use applications. Competitors will have a difficult time both acquiring or developing a similar technology as well as the related engineering expertise. Polaris also has the advantage of being the leading brand with a large installed base of potential customers. The tire technology could also provide a differentiator in the commercial UTV market which Polaris has been making a more determined push.

Eicher-Volvo Joint Venture May Enter Mini-Truck Market

eicher-volvo-joint-venture-ve-commercial-vehicle-studying-plans-to-enter-mini-trucks-segment

Eicher is considering a mini-truck offering to enter the small commercial vehicle market through their joint venture with Volvo.

A joint venture between Eicher Motors Ltd. of India and Volvo, VE Commercial Vehicle, may enter the growing small commercial vehicle market in India. The small commercial vehicle market consists of the vehicles of 5 tonnes or less. The joint venture is considering a mini-truck offering in the 1-3 tonne range. This segment already features vehicles like the??Ashok Leyland Dost, Tata Ace and Mahindra’s Maxximo Plus. The decision to enter the market will be made within the next six months with a potential product launch in 2016-17.

The small commercial vehicle market represents over 50% of the commercial vehicle market with an estimated 359,000 vehicles sold every year and growth to over 500,000 expected by 2019. The market is driven by the hub and spoke distribution system in India where large trucks transfer goods to or between hubs and smaller vehicles deliver the goods the last few miles. Learn more: ??Economictimes.com

Comment:?? For regulatory reasons, mini-trucks have not been a major market in the US although farmers often purchase used mini-trucks coming out of Japan and use them as of-road work vehicles. In some areas they are being allowed more access to public roads, but this is often in the context of agricultural use rather than the general public. Eicher, which also makes motorcycles, has a joint venture with Polaris that started in 2012. This joint venture is focused more on a range of personal vehicles with reports of a four-wheeled vehicle to be launched in 2015. At the same time, there could be opportunities for the companies to work together in the small commercial vehicle space given Polaris’s acquisitions in the past few years of GEM, Aixam and Groupil.

NHTSA Final Rule For Rear Visibility Technology Impacts LSVs

Garia LSV In NYC

In the future LSVs such as this one from Garia will need to have rear visibility technology.

In March, 2014 NHTSA finalized a rule requiring ??rear visibility technology in all new vehicles under 10,000 pounds by May 2018. The??final rule

“…requires all vehicles under 10,000 pounds, including buses and trucks, manufactured on or after May 1, 2018, to come equipped with rear visibility technology that expands the field of view to enable the driver of a motor vehicle to detect areas behind the vehicle to reduce death and injury resulting from backover incidents. The field of view must include a 10-foot by 20-foot zone directly behind the vehicle. The system must also meet other requirements including image size, linger time, response time, durability, and deactivation.”

The rule would also apply to LSVs. According to NHTSA, on??average, there are 210 fatalities and 15,000 injuries per year caused by backover crashes with more than half of those involving children under 5 or adults over 70.

Learn more: ??NHTSA.gov

Comment:?? While rear view technology is becoming more common in full-size vehicles, it will be more expensive to put into LSVs relative to their overall price. On the other hand, certain market segments such as the college/university market, which already purchase LSVs in part for their safety features, may be willing to pay for this additional feature. Consumers purchasing LSVs for personal transportation may not be as willing.

You could argue that many LSV models offer much more visibility than trucks or buses and full-size cars. Here are some come comments from NHTSA regarding this issue.

Like all other vehicle types covered under today’s final rule, LSVs are required to provide the driver with a rearview image meeting the requirements specified in the regulatory text at the end of this document regardless of whether the vehicle has any significant blind zone. However, like other manufacturers, low-speed vehicle manufacturers can petition NHTSA for an exemption or for rulemaking.

 

NHTSA did receive some comments regarding the difference in blind spots between LSVs and other vehicles. This is the agency’s response.

…the latest agency research indicate that low-speed vehicle blind zones vary greatly within this vehicle class. Some also contain significant blind zones similar to other passenger cars and light trucks. However, some others may have very small blind zones. ??As low-speed vehicles may have a GVWR of up to 3,000 lbs., these vehicles are also fully capable of causing injury and death to vulnerable pedestrians. As backover crashes do not typically occur at speeds above 25 mph (the top speed of low-speed vehicles), we believe it is appropriate to include low-speed vehicles in today’s final rule. Further, the agency requested comment on low-speed vehicles in the NPRM and sought information as to whether the agency could reasonably conclude that low-speed vehicles present no unreasonable risk of backover crashes, but nocommenter provided any substantive information on this point. Therefore, the agency cannot reasonably exclude, as a category, low-speed vehicles from the requirements of today’s rule because the available information

The agency estimates the cost per vehicle of such a system will be $132 to $142. However, this includes some assumptions of manufacturing efficiencies and volumes which are more likely to accrue to high volume full-size vehicle manufacturers than lower volume LSV manufacturers. For LSV manufacturers the best approach to this issue may be to petition the agency for specific models or hope that they may share some in some of the cost reductions the rest of the market creates or that future technology becomes less expensive.

Another market response may be for consumers to switch to golf cars or utility vehicles. From SVR’s scanning of road use regulations, more municipalities are allowing golf cars and UTVs varying access to public roads, not just LSVs. This regulation will only add to the cost differential that consumers consider between LSVs and these other vehicles, especially new or used golf cars and lower priced UTVs.

Polaris Posts Strong First Quarter 2014 Results

Beauty shot of the new Sportsman ACE from Polaris.

The new Sportsman ACE from Polaris is one of the reasons for the company’s strong financial results for Q1 2014.

The following are some of the highpoints of the Polaris earnings call discussing their first quarter 2014 financial results with a focus on aspects relevant to the STOV market.

  • Polaris first quarter sales increased 19% to $888 million.
  • Net Income increased 7% to $80.9 million.
  • Management is raising their expectations for full year revenue and earnings to increases of 14%-16% and 17%-18% compared to 2013.
  • Off-Road Vehicle sales which includes UTVs and ATVs increased 11% and market share improved with good demand for the RZR XP 1000 and the new Sportsman ACE.
  • In North America management estimated that side-by-side sales retail grew upper single digits in an industry that grew similarly.
  • The new Sportsman ACE has gotten off to a good start.
  • PG&A momentum remains very strong with first quarter sales up 20%, parts accessories and apparel all grew strong double-digits led by strength in both ORV and Motorcycle related products.
  • First quarter Polaris commercial revenues increased by over 60% with sales to Bobcat Polaris national accounts and BRUTUS up notably year-over-year. Commercial segment has grown more slowly than expected by management but they will continue to put resources into this segment.
  • Small Vehicle first quarter revenue increased by 248% as all three brands, GEM, Goupil and Aixam grew year-over-year. The increase includes the addition of revenue from recently acquired Axiam, which also increased market share in Q1, and an increase of over 20% from the GEM product line.
  • International business had another strong quarter with sales increasing 44% led by nearly 50% and 60% growth in the EMEA and Asia Pacific regions respectively. Small Vehicles, PG&A and side-by-side sales all grew over 30%.
  • ORV is now expected to grow 9% to 11% in 2014.
  • Small Vehicles guidance is unchanged up 25% to 30% which includes the full year of the Aixam acquisition.
  • ACE orders in both North America and internationally have been better than expected with only minimal signs of cannibalization of either ATVs or side-by-sides.
  • There is broad based strength across many ORV products.
  • Management is seeing increased competitiveness and promotions in the side-by-side market.
  • Management is disappointed in Brutus sales into the commercial segment so far but expect to see improvement over the next 12 months as dedicated sales staff, partnership with Ariens and other efforts help them adjust to the longer B2B and B2G selling cycles in this segment.

Learn more: ??Seekingalpha.com (earnings call transcript)

Comment:?? The early signs that the ACE is not cannibalizing ATV and UTV sales is an indicator that Polaris is creating another vehicle category. More time will be needed to see how sales play out over the next 12 months to see if this theses remains true. It’s not only a question of cannibalization but how buyers are actually using the vehicles – what market segments, what applications, etc.

More Club Car Models To Use Subaru EFI Engine

Club Car XRT850 utility vehicles will soon feature a new Subaru EFI engine.

Club Car XRT850 utility vehicles will soon feature a new Subaru EFI engine.

Club Car’s ??XRT800 and XRT850 utility vehicles manufactured after April, 2014 will use the??new Subaru 14-hp rated, 404-cc, single-cylinder overhead cam engines with electronic fuel injection (EFI). The new engine represents a 30 percent increase in horsepower and the EFI technology will allow for more reliable starting, better fuel efficiency and in general improved performance. The??Subaru’s splash lubrication system requires no oil filter eliminating the need for buying, changing and disposing of filters.

Learn more: ??Digitaljournal.com

Comment:?? EFI technology is an example of automobile technology that has migrated into the STOV market. Technology migration such as this typically starts with higher-priced, specialty or higher performance models in the market. In the case of EFI technology, it first started appearing in the high-end recreational side-by-sides and in vehicles for work applications that had higher performance requirements. Now EFI is moving to smaller, less expensive vehicles like these Club Car ??XRTs which are compact UTVs. Another example is Yamaha’s use of EFI engines in their golf car and utility vehicle product lines.

New Tracked Utility Vehicle From Fecon

The new EX60 Tracked Utility Vehicle from Fecon.

The new EX60 Tracked Utility Vehicle from Fecon.

Fecon, a maker of vegetation management equipment such as mulchers and stump grinders, recently introduced their new EX60 Track Vehicle. The EX60 has a 6,000-lb payload capacity and all-terrain rubber tracks. The company is targeting applications such as????fleet service, fire-fighting, material handling, or spraying vegetation and insects where trucks or larger vehicles can???t go. ??Two standard auxiliary hydraulic circuits can power optional equipment. ??A load sense pump is offered as an option for more demanding applications. ??The EX60 features a universal mounting plate in the payload area to easily switch between solutions, whether skid mounted equipment or material handling apparatus. ??A reversible operator station and operator controls add to the flexibility of the EX60. ??The 46HP diesel engine enables transport of the impressive payload and 7-MPH travel speed.

There is no additional information on the cost of the vehicle or other specifications. Fecon existing lines of equipment are for the??right-of-way, land clearing, firebreaks, pasture restoration, invasive species and wildlife restoration markets.

Learn more: Fecon.com

Comment: ??This vehicle definitely pushes the envelope and falls in the more heavy duty range of the of STOV market. While the end market for a vehicle like this may be on the smaller size, it is another example of how the STOV market is being segmented by specialized application needs. While in many cases this segmentation can be handled by customization of base models with a wide range of uses, in other cases more specialized, purpose built vehicles are needed. Another less extreme example in the work UTV portion of the market would be the Brutus line of UTVs from Polaris with it’s PTO and multiple attachment capability. The EX60 may have appeal in other markets but Fecon’s distribution network focusing on the vegetation management markets will likely limit sales of the vehicle to this customer base.

Tata Motors To Launch New Mini-Truck

The Tata Ace mini-truck

The current Tata Ace mini-truck

Tata Motors announced plans to launch a new mini-truck for the Small Commercial Vehicle ??(SCV) segment within the next month. The new vehicle will be targeting the segment between Tata’s Ace mini-truck and their Super Ace pickup truck. The SCV segment, which comprises sub-1 tonne payload mini trucks and above 1-tonne payload pick- ups is below the 3.5 tonne (gross vehicle weight) Light Commercial Vehicle segment. The segment has become a competitive segment as more companies have launched vehicles for the market. Tata holds an estimated 48% share of the market.

In India and other countries in the region SCVs are used for the delivery of goods in the last mile of the distribution network. This service need often offers an opportunity for entrepreneurs to start their own business as a local shipper. They typically will get financing to purchase a vehicle. Despite a sluggish economy of late the, market segment is expected to grow as penetration in rural areas is low and when compared to other developing countries, India’s use of SCVs is low as well.??Learn more: ??Thehindu.com

Comment:?? The SCV market in India is dominated by Tata and other local or regional manufacturers. It should be noted though that Polaris has started to enter other vehicle segments in India. In the future there could be potential for their GEM line or some of their vehicles from European acquisitions for use in this market. For electric vehicles, the ability of the local electrical grid to provide reliable charging opportunities, could be a significant hurdle though.

Polaris Adds Two Diesel Work UTVs To Lineup

The new Polaris Ranger Diesel HST Deluxe with climate controlled cab.

The new Polaris Ranger Diesel HST Deluxe with climate controlled cab.

The new Polaris Ranger Diesel HST with a Yanmar diesel engine and hydrostatic transmission.

The new Polaris Ranger Diesel HST with a Yanmar diesel engine and hydrostatic transmission.

Polaris Industries recently introduced two new diesel powered Ranger work utility vehicles to their product lineup, the Ranger Diesel HST and the Ranger Diesel HST Deluxe. Both vehicles are powered by a 24hp Yanmar diesel engine with engine braking which is paired with a hydrostatic transmission featuring Polaris??? exclusive On-Demand True All-Wheel Drive. The vehicles also include a????treadle pedal and multi-link coil over De Dion rear suspension. The treadle pedal allows for travel in forward to reverse without shifting gears. The Deluxe model comes with a factory-installed cab with climate controls and an electric assist for the dump bed. Both models have a 1,250 lb cargo capacity and 2,000 lb towing capacity along with a 90 amp alternator for better cold weather starting and operating accessories. The models are targeted for the agricultural and rural customer. The vehicles will be available in April with the Ranger Diesel HST starting at $15,199 and the Ranger Diesel HST Deluxe at $20,999. ??Learn more: ??Polaris.com

??Comment:?? Polaris continues to build out their work utility vehicle lineup, targeting different customer segments of the consumer work and commercial portions of the market. While these new Ranger models are primarily aimed at the agricultural and work customer, they could also be used in the construction market or other segments that might use diesel vehicles. The company has been making a particularly strong push into the commercial area over the last several years with their Brutus vehicle partnership with Bobcat, the GEM lineup which is primarily for commercial and institutional use and now these models provide a slightly different flavor. The question in the STOV market often returns to how well the distribution channel matches to the target customer. Since the agricultural segment has historically been served by the powersports dealer to a certain degree this should not be an issue with these models. For other more purely commercial segments where these vehicles could find traction, a more efficient distribution channel may be needed to fully exploit their potential.