Category Archives: market trends

New Polaris Ranger Midsize Models For 2014

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New 2014 Polaris Ranger 570 EFI

Along with their new RZR XP 1000, Polaris is also introducing new models for their lineup of Ranger utility vehicles for work applications. The new models include the Ranger Crew 900, Ranger 570 EFI and Ranger Crew 570 EFI.

The Ranger Crew 900 features a 60-horsepower ProStar 900 engine, the ability to tow one ton, a new high capacity battery and stator, and an integrated Lock & Ride PRO-FIT cab accessories. It also has a more rigid chassis, and extended wheel base, 1 in. more rear suspension travel and 11 in of ground clearance. The cargo box is wide enough to fit a pallet and has a 1,000 lb capacity. The engine is located under the cargo box providing a quieter ride.

Similar to the Ranger XP 900 cab frame, the new Ranger Crew 900 frame also features profile tubing, providing a 360-degree sealing surface for every cab component. Windshields, roofs, doors and rear panels follow the shape of the vehicle, locking directly into the cab frame???s precision contours. The cabs are 60 percent quieter at idle and 40 percent quieter at 20 mph. The vehicle fits five people and has a new center console, more storage and cup holders and tilt steering wheel. The Ranger Crew 900??is available in Sage Green, Solar Red and Polaris Pursuit Camo. Limited Edition models include Sunset Red and Titanium Matte Metallic. Electronic Power Steering (EPS) is standard on the Polaris Pursuit Camo and Limited Edition models.

The ??Ranger 570 EFI and Ranger Crew 570 EFI feature a liquid-cooled, single-cylinder 570 engine delivering smooth acceleration and 25 percent more power than previous models. The models also features a new transmission, a quieter ride with the engine located behind the seat, a larger stator for operating more accessories and electronic power steering on Limited Edition models. The standard editions for both models are available????in Sage Green, Solar Red and Polaris Pursuit Camo.

Learn more: ??ATVIllustrated.com

 

Polaris Announces New 2014 RZR XP 1000

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New 2014 RZR XP 1000 from Polaris

The competition in the side-by-side sport recreation segment continues to heat up with the latest model introduction from Polaris. The new 2014 RZR XP 1000 features a 999cc engine with a reported 107 hp. ??This would give the RZR the largest and most powerful engine in the segment. Other key improvements to the top of the line RZR include:

  • A tubular steel chassis
  • Retuned, high performance PVT system
  • Redesigned 3-Link trailing arm rear suspension giving the vehicle 13.5 inches of ground clearance
  • 29 in. Maxxis Bighorn tires on all new 14-inch cast rims
  • Adjustable??Walker Evans Position Sensitive Anti-Bottoming Needle Shocks for all for wheels
  • 18 inches of rear travel and 16 inches of front travel
  • Electronic power steering
  • Dual-piston calipers and larger 248mm ventilated discs on all four corners

The interior of the new RZR XP 1000 from Polaris

There were also improvements to the interior over previous RZR models.

  • New seats with more hip cushioning and a new thin-film technology under the cover for a drier ride in wet conditions
  • Tool-less seat sliders
  • New, flow-through tongue seat belt design that is easier to adjust and retract
  • Larger glovebox
  • Sealed smartphone storage
  • LED floor lighting and backlit instrument panel
Other improvements include:
  • 9.5 gallon fuel tank
  • Larger cargo box with more tie-downs
  • Better integration with Polaris accessories for easy installation
The RZR XP 1000 will be offered in White Lightning and Titanium Matte Metallic, and will be available at Polaris dealerships in August. ??The MSRP starts at $19,999.

Learn more: ??Polaris.com

Arctic Cat Reports Strong Quarterly Results

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Arctic Cat Wildcat Side-by-Side helps drive strong quarterly results

Arctic Cat, manufacturer of snowmobiles, ATVs and the Wildcat side-by-side, announced strong results for the first quarter ending June 30, 2013 of their 2013 fiscal year. The following are some of the highlights of the earnings call with analysts with a focus on UTV/side-by-side issues.

  • Net sales for the first quarter increased nearly 9% to 120.8 million versus 111.3 million for the same quarter last year. Sales growth was driven by increased sales across all product lines.
  • ATV and Side by Side sales increased 5% to 76.3 million versus 73 million
  • Key drivers for the sales increase were the Wildcat X high-horsepower sports Side by Side and the Wildcat four seat model, both of which started shipping during the fourth quarter of last fiscal year.
  • While retail ATV sales underperformed the overall industry, North American Side by Side retail sales experienced strong growth and gained market share with Wildcat retail sales increasing 47%.
  • The new model year 14 lineup which will include some new models that will allow Arctic Cat to enter some new market segments will be announced in a few days.
  • Arctic Cat plans to continue to launch new models each quarter of this fiscal year including the Wildcat 50 trail version that was announced last February. (The new models could be ATVs, side-by-sides or snowmobiles)
  • Management expects new products to help grow the ATV and Side by Side business between 25 and 29% for the fiscal year.
  • Expansion of our Wildcat Side by Side lineup will contribute to increased PG&A sales this fiscal year.
  • During the quarter, R&D expenses increased 18% as product development is a focus.
  • Management sees potential to grow their share of the recreational off road market and some of the new products being launched will take the company into new market segments.

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

Comment:?? As evidenced by Arctic Cat’s recent and planned model introductions, the competition in the UTV/side-by-side market continues to heat up. It will be interesting to see what new market segments they will be targeting. Similar to Polaris, they are looking to diversify their product line and segment coverage. Going forward the competition should be good for consumers, lowering costs and/or improving the value for their purchasing dollar with more features and better performance. For manufacturers, it may hurt profit margins and/or put more pressure on them to keep innovating and launching new models.

Polaris Reports Another Strong Quarter for Q2 2013

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Polaris Ranger XP 900 helped drive overall sales in the second quarter of 2013

Polaris Industries just announced their Q2 2013 financial results and reported another quarter of strong earnings and market share gains. The following are the highlights of the earnings call with analysts with a focus on the STOV segments.

  • Sales for the second quarter increased 12%, to a record $844.8 million driven by share gains and double-digit retail growth in North America
  • Polaris captured market share in ATVs and side-by-sides which also drove significant gains in PG&A business
  • Second quarter net income rose 15% to $80 million yielding record earnings per share of $1.13, a15% improvement over the prior year period.
  • PG&A sales increased 33% for the quarter
  • ORV segment which includes ATVs and UTVs ??performed well fueled by the RANGER 900 XP and supported by RZR products.
  • Revenue for ORV was up 7%, which is less than retail as inventory was reduced in preparation for new model launches.
  • Gained North American market share in both ATVs and side-by-sides.
  • North American side-by-side retail sales strengthened in the second quarter, up double-digits percent driven by growth in both RANGER and RZR categories. In fact, both brands had their largest unit retail quarters in their history.
  • Management estimates the North American side-by-side industry also improved, growing just under 10% in the second quarter and is now up upper-single digits year-to-date.
  • Initial Brutus shipments began into over 400 Polaris commercial dealers.
  • In the military segment Polaris remains the clear #1 in ultralight tactical vehicle space with the new MRZR is selling well globally
  • Due primarily to the Aixam purchase and contributions from GEM and Goupil, small vehicle revenues increased $22 million and 190% for the second quarter. Year-to-date, sales are up 109%.
  • GEM business is improving with second quarter retail sales were up in excess of 50%. Management reports better operations for GEM and improved traction in the B2B market place, particularly in the People Mover sub-segment.
  • Goupil also had a strong second quarter with orders up over 30% and notable cost and productivity improvements in operations, driving gross margin improvements.
  • ORV PG&A sales increased 25% and small vehicles 165%. ??“The attachment rate that we’ve seen on the Ranger 900 XP with the new integrated cab system is phenomenal.”
  • In Europe – Polaris’ Q2 ORV retail grew and year-to-date, is about flat in an ORV industry that remains down double digits. Polaris maintains their leading position.

Looking ahead:

  • Future 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
  • ORV market share is expected to continue to increase in 2013
  • For small vehicles, which includes the GEM and Goupil businesses, along with the recently acquired Aixam Mega, sales are expected to increase well over 100% for the full year 2013.
  • Both GEM and Goupil are expected to increase sales for the full year over last year total company sales increase in the range of 13% to 15% for the full year 2013.
  • Management is not feeling pricing pressure in the UTV market as they are confident that the Polaris brand/product can garner a price premium
  • Process improvement in small vehicle operations are improving quality and delivery as well as reducing costs. Management feels they are positioned very well in this space for strong growth.
  • The Bobcat dealer network has lagged Polaris in the commercial utility segment and the sell through of the Brutus vehicles will be slower than consumer vehicles because of the slower commercial vehicle buying cycle.
  • Management was even more upbeat than usually about the 2014 models that will be announced at the dealer meeting in a few days.

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

Comment:?? Polaris management continues to execute on their strategic plans very well. They are setting the industry standard for inventory management, operational efficiency and product development and innovation. In an increasingly competitive market it will be interesting to see what features and innovations their new models will have.

Quadski Maker Gibbs Looks to Expand

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Quadski from Gibbs Sports Amphibians

Gibbs Sports Amphibians, the manufacturer of the Quadski, is planning to launch to new models and expand their dealer network. ??The Quadski??is an amphibious vehicle that converts from an ATV to a PWC in less than five seconds. Gibbs currently has five dealers for the Quadski but expects to have one hundred dealers by the end of 2014. They will need the increased distribution as the company expects to produce 1,000 Quadskis this year. Gibbs is also looking to export their product to international markets.

The Quadski costs about $40,000 and is available in blue, black, yellow, silver and red. It is powered by a 175 hp BMW Motorrad engine and can reach speeds of 45 mph on land or in the water. ??In addition to the Quadski, Gibbs is planning on launching new consumer, commercial and military products over the next 18 months. Learn more: ??Powersportsbusiness.com

Comment:?? Selling 1,000 of these vehicles at $40,000 apiece is an ambitious goal, especially as a purely leisure vehicle. On the other hand, law enforcement and military organizations might find this to be a compelling technology for specific applications and could help meet that goal. The Quadski does represent the continuing innovation and product advancements in the STOV market. Lately the versatility of the vehicles has been a focus, whether it is convertible seating in the Honda Pioneer UTV, the ability to use various work attachments in the Polaris/Bobcat Brutus or now the ability to travel on land or water. It is the versatility of STOVs and the ability to match the vehicle to an application or specific set of applications that has helped the market grow strongly in an overall slow economic recovery.

New Florida Law Allows Conversion of LSVs to Golf Car Speeds

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A new Florida law went into effect on July 1, 2013 that allows owners of low-speed vehicles to mechanically??convert their vehicles to normal golf car speeds of 20 mph, which lowers their insurance costs. Reportedly thousands of Florida residents are waiting to make the change. The conversion can save an owner between $500 to $800 in insurance costs since a typical golf car can be insured for only $100 compared to $600 to $900 for an LSV. They can also save on the annual LSV registration costs of about $50. The conversion costs about $40. ??Learn more: ??WUSFNews

Comment:?? This law further blurs the line between golf cars and LSVs. While most of the time this hurts the LSV market by making golf cars a more viable substitute, this time the law should help the LSV market by significantly reducing LSV operating costs in a major market for the vehicles. With its many retirement communities geared to golf car or LSV use, Florida has more than 5,000 registered LSVs or golf cars modified to meet LSV requirements.

Polaris to Announce New RZR July 29th

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Polaris is set to unveil their new 2014 RZR on July 29th, the first day of the OEM’s dealer meeting. There is also a consumer contest with five RZR’s being given away connected with the unveil. ??Learn more: ??Powersportsbusiness.com

Comment:?? It will be interesting to see what new features and/or capabilities the new RZR will have. Attractive growth and profit margins in the recreational segment of the side-by-side market has increased the competition between the various OEMs and driven improvements and innovations in horsepower, ground clearance, vehicle suspensions and other capabilities.

Mixed Reviews for the Yamaha Viking

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Yamaha’s new Viking utility vehicle

The new 2014 Yamaha Viking UTV received both positive and negative reviews from a mix of dealers who saw the vehicle in person and consumers commenting online about the various features of the vehicle. ??In general, dealers sound more positive about the vehicle and see it as a step forward as Yamaha moves on from their Rhino offering. For dealers they find the value of the vehicle appealing. The three person seating capacity and other features make for a vehicle that can crossover from recreation to hunting to work. The versatility also comes at a nice price point for dealers, $11,499, the same as the 2013 Rhino. The dealers also liked Yamaha’s plans to introduce a new model for each of the next five years. Consumers were hoping the vehicle would be powered by a new engine rather than the modified version of the Rhino engine that is being used. Learn more: ??Powersportsbusiness.com

Comment:?? Once the Viking actually starts being sold and used by consumers the real assessment of the vehicle will be made. Nonetheless, the new Viking from Yamaha and plans for new model introductions annually is another sign of increasing competitiveness in the growing UTV market. With the likes of Honda, Arctic Cat, John Deere and Can Am all adding new models or whole new product lines, consumers should be the real winners in the long run as the competition drives new feature innovation and value pricing.

Renault Offers Twizy Cargo for Commercial Use

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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.

Robotic STOVs Searching For Non-Military Markets

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Cuts in defense spending are pushing vendors of robotic mules for the military to look for non-battlefield market opportunities. While some of these vehicles can be quite large, the R-Gator from John Deere is basically an autonomous UTV. John Deere took their expertise developed for precision farming and transferred it to a Gator for military applications. One of the basic uses for these vehicles in a military setting is to carry some of the soldiers gear or additional equipment that might be too burdensome. ??For example, the R-Gator has been used in training exercises to carry 100 lb robots used for bomb disposal. The first R-Gator was used by the Navy for perimeter patrol. Typically these robotic vehicles can operate in four modes: ??autonomous, leader-follower, tele-operated and manual.

The civilian applications are potentially wide-ranging, encompassing any task that is “too dirty or dangerous” for a person to do. Manufacturers are eyeing emergency response, disaster recovery, security, fire suppression, humanitarian supply, law enforcement and agriculture applications. Learn more: ??Nationaldefensemagazine.org

Comment: ??If successful, this would join a long list of military technology that has found a fertile market on the civilian side. One related technology that is just coming to the civilian side is non-pneumatic tires for UTVs and other off-road vehicles. Polaris is one of the manufacturers trying to transfer this technology. The increasing capabilities of off-road STOVs are a good match for the autonomous technology of these vehicles that requires the ability to handle a variety of difficult terrain and obstacles.