Polaris Launches BRUTUS Utility Vehicle Line for Commercial Segment

Posted on March 7, 2013 by Marc Cesare

The New BRUTUS Line of Commercial UTVs from Polaris

Polaris Industries has introduced their BRUTUS line of utility vehicles for the commercial work segment. Their first purpose-built commercial vehicle line offers front-end power take-off capability. The product line includes the BRUTUS, BRUTUS HD and BRUTUS HDPTO models with MSRPs of $15,999, $17,999 and $23,999 respectively. Developed as part of their partnership with Bobcat, Polaris will manufacturer the vehicles while Bobcat will provide an assortment of attachments. Key features of the vehicles include:

24 hp diesel engine
Front-end power take-off option powered by the vehicle’s engine
Hydrostatic transmission
Treadle pedal that allows travel in forward or reverse without shifting gears
6 inch of suspension travel
On-Demand True All-Wheel Drive
1,250 pound cargo capacity and 2,000 lb towing capacity
Pro-Tach attachment system for the HD and HDPTO models
PTO powered attachments: ??angle broom, finishing mower and snow blower and hydraulically-powered attachments: ??snow blade, pallet forks and materials bucket
Enclosed cab with heat, defrost and AC is standard on the HDPTO

Polaris will sell the vehicles through their existing dealership network and start shipping the vehicles in April 2013. Learn more: ??Greenindustrypros.com and Polaris.com/Commercial

Comment: ??This new line introduction is more evidence of the continuing trend in the STOV market of product diversification by many of the manufacturers. Polaris is a prime example, from their strength in the recreational and general work UTV markets they have expanded into more focused commercial segments with their Bobcat alliance and into electric utility vehicles and personal transportation segments with their acquisition of GEM. Golf car manufacturers have also done the same from their fleet golf car base into heavier duty off-road UTVs and into the LSV markets. The challenge these companies face is developing a distribution network for these new product lines. Typically their traditional dealer networks do not reach or only partially reach the customer base in the segments they are newly targeting. In addition, the sales process may be different such as selling UTVs to colleges and universities compared to selling to a retail customer.

Recent Side-by-Side Dealer Survey Confirms Strong Market

Posted on March 1, 2013 by Marc Cesare

Powersports Business and RBC Capital Markets recently released their 2012 fourth quarter side-by-side dealer survey and it confirms a strong market and continued positive outlook for the side-by-side market. More than a third of the dealers surveyed reported new unit sales growth of 10% or more for the fourth quarter 2012 and over 40% of dealers expect sales to increase 10% or more in 2013. Thee figures are in line what Small Vehicle Resource (SVR) has found in interviews with dealers for our recent STOV market study.

Some other highlights from the study:

Side-by-side buyers spend money on accessories – often $1,000 but up to $5,000 is not uncommon helped by inclusion in financing plans. SVR has heard similar amounts from dealers ??- $1,000 to $1,500 spending on accessories is common.
Popular accessories: ??cabs, roofs, windshields, wheels, gun racks, plows, heaters, stereos and street kits. The last one is not too surprising. The trend for a few years had been for work UTVs to be made LSV compliant, but now more states and municipalities are passing ordinances to allow UTVs on streets with some modifications but not as stringent as LSV requirements.
A sizable portion of buyers, around half, are new to the industry attracted by the utility and convenience of the vehicles for: ??older buyers; seating capacity; a generally more comfortable riding experience;
89% of Polaris Ranger and 73% of Polaris RZR dealers were extremely or somewhat satisfied with sales of the vehicles in comparison to 65% of Can Am Commander and ??50% of John Deere Gator dealers. ??Honda Big Red and Yamaha Rhino dealers were clear laggards in this measurement with 13% and 11% respectively.

The latter point is more proof that the recreational riding segment of the side-by-side market is the fastest growing segment. Part of the reason is that buyers in the segment tend to have a shorter buying cycle. They are interested in features and performance and are willing to upgrade to a newer vehicle sooner than buyers in other segments. These are also higher price point vehicles with the typical buyer having a higher household income. In a choppy and uncertain recovery this segment’s buyers have more money to spend than other side-by-side segments. The aggressive marketing and pace of model introductions in this segment as companies vie for market share is a factor as well.

Learn more: ??Powersportsbusiness.com

Small Vehicle Resource Announces New Market Study on the Small, Task-Oriented Vehicle Market in the US

Posted on February 27, 2013 by Marc Cesare

??New STOV Market Study: ??Trends, 2007-2011, Estimates and Forecasts 2012-2116

?? ?? ?? ??New Study Analyzes the Product Base of an $12 Billion STOV Industry

________________________________

Small Vehicle Resource, LLC (SVR) has published the sixth in a series of market research reports on the small, task-oriented vehicle (STOV) industry. The report covers small vehicle products ranging from golf cars, light transport and portage vehicles built off golf car frames, to heavy duty traditional turf vehicles and off-road utility and recreational vehicles (side-by-sides). The study concentrates on the product side of an estimated $12+ billion industry, including parts and service.

SVR is the successor company to International Market Solutions, LLC with the same principals involved. ???SVR,??? explains Managing Director, Stephen Metzger, ???is an appropriate rebranding of our research efforts, as ???Small Vehicle Resource??? gives clear view of our focus in the STOV industry.??? The Small, Task-Oriented Vehicle Market in the United States, Trends from 2006-2012, Forecasts to 2016 contains analyses and the outlook for:

??? The golf car industry???the market for fleet golf cars;

??? Privately-owned vehicles???golf cars, upgraded golf cars, low-speed vehicles (LSVs);

??? Utility vehicles built on golf car or modified golf car frames;

??? Heavy duty utility vehicles, focusing on off-road side-by-side vehicles;

??? Non-traditional, or ???crossover??? competition across industry segments;

??? Used vehicles as viable options to new vehicles;

??? Technologies that will have an impact on the industry;

??? State of the market survey from dealers??? perspective;

??? Latest regulations on small vehicles ownership and use.

???Small, task-oriented vehicle or STOV is the generic term we created to describe exactly what these vehicles do,??? states Metzger. ???They are designed for a relatively narrow range of tasks, such as golf, personal transportation, haulage and other work functions, but for the most part are built off of a few universally applicable body frames and drive trains.??? ???This sets the stage,??? Metzger continues, ???for substantial crossover competition, with OEMs moving out of their traditional markets???a trend and development we analyze in detail.???

Major findings in the study are:

SVR forecasts new vehicle production for the overall STOV market to grow 18% from estimated 462,000 units in 2012 to approximately 545,000 units in 2016;

Excluding the off-road segment which is predominantly ICE, electric power continues to gain significantly in units sold, across all segments of the golf car-type market, that includes golf cars, privately-owned vehicles, and light portage and transport vehicles increasing from 72% in 2007 to a projected 82% in 2016.

Recovery from the recession has been spotty with some STOV market sub-segments growing strongly while others continue to struggle.;

STOVs continue to be upgraded, adopting automotive features and standards, which are starting to migrate from high-end recreational UTVs into other STOV segments, promoting market growth;

Golf cars remain a staple product in both new and used vehicle markets but the fleet market continues to face the challenge of a declining golf course population;

The high-end off-road market weathered the recession and slow recovery very well. The promise of profits is increasing segment competition, marked by frequent, feature laden model introductions and new sub-segments like crossover UTVs;

Commercial markets are a high growth area for LSVs while the personal transportation market without tax credits offers only low to moderate growth;

Schools, municipalities and even some corporate customers are increasingly turning to LSVs to fulfill ???green??? goals and policies with safety features a strong decision-making factor as well;

*?? *?? *?? *

Further information, including a detailed table of contents, can be obtained by contacting

Stephen Metzger, Managing Director, SVR

(914) 293-7577 or smetzger@azureblog.smallvehicleresource.com

Yamaha Powersports Sales Increase in North America in 2012

Posted on February 26, 2013 by Marc Cesare

North American net sales of powersports products were up 3.4 percent to about $555 million in 2012. Sales of golf cars and generators increased in the US, however ATV sales declined. In a recent interview management stated that side-by-side retail sales had increased by 60% for the year. They expect more growth in the future pointing to overall industry recovery from the recession, general consumer enthusiasm for powersports products, improved financing options for consumers and a more stabilized Yamaha dealership network. ??Learn more: ??Powersportsbusiness.com

Arctic Cat Earnings Call Recap

Posted on February 22, 2013 by Marc Cesare

Here are some of the highlights from Arctic Cat’s most recent earnings call. They focus on the side-by-side part of the business. Their fiscal year ends March 31.

ATV sales (includes ATVs and side-by-sides) increased 28% to $69.6 million from $54.4 million for the quarter compared to last year driven by strong Wildcat side-by-side sales. ATV sales increased 40% year to date to $212.2 million from $151.1.
North American side-by-side retail sales increased over 35% for the quarter and year-to-date retail sales increased over 50% driven by both our Wildcat Sports side-by-side and Prowler HDX utility vehicle.
Recently announced a new 4-seat Wildcat 1000 model and a new high performance 90-plus horsepower Wildcat model. Both of these will begin shipping in the fiscal fourth quarter.
Expect the ATV and side-by-side business to grow sales 36% to 41% for the full year driven by shipments of the Wildcat side-by-side models.
“Extremely positive” feedback received from dealers on the new Wildcat models. Extra horsepower is good for dune riding.
Demo rides for media and customers went “extremely well” for Wildcat X and Wildcat 4
Side-by-side market as a whole is up and estimated 10% and 20% for the year.
On option and accessory spending: ??Maybe spend $300 or $400 on Prowler or but “…you???re seeing customers that will come in and spend over $1000 and $1500 putting on roof, windshield, things of that nature on a Wildcat.“
The 64.5-inch width of the Wildcat makes it more suitable for out west on dunes and more wide open trails rather than narrower ATV trails in the east.

Learn more: ??Seekingalpha.com

John Deere Introduces Four Seat Gator XUVs

Posted on February 21, 2013 by Marc Cesare

John Deere’s New Four Seat XUV 825i S4

Earlier this month John Deere announced the addition of a four seat model to their XUV line. The XUV 825i S4 is a crossover UTV designed to be used for work and recreational riding. There is also a diesel powered version, the XUV 855D S4. An important feature of the vehicle is a convertible rear seat cargo space that offers under seat storage in the four passenger configuration. In the two passenger configuration there is more cargo space and an additional 400 lbs of payload capacity. Other key features include:

50 hp, 812 cc, inline 3-cylinder engine
Electronic fuel injection
Top-speed of 44 mph
Fully locking 4-wheel drive system
Fully independent, double wishbone suspension with 8 inches of wheel travel and 11 inches of ground clearance
Power steering, with anti-kickback feature
16.4 cubic feet cargo box with a 1,000 pound payload capacity
Diesel engine version has a 23 hp, liquid cooled 3-cylinder diesel engine

There are also upgrades for the XUV 825i, 625i and 855D including:

New CVT transmission with dynamic downhill engine breaking
Seven-gallon fuel tank with digital readout
Digital display cluster standard for all the models
Optional power steering for the 825i and 855D models.

Comment: This vehicle introduction continues the trend of four-seat vehicles entering the highly competitive recreational and crossover segment of the market. It started with four seat versions of the Polaris RZR 900 and Arctic Cat’s Wildcat in the pure recreation end of the market. Four seat versions will now be a standard element of product lines moving forward. The ability to carry one or more passengers comfortably is one of the reasons the UTV market is still experiencing customer conversion from the ATV market.

Learn more: Deere.com

Polaris Announces More Limited Edition RZR XP 900 Models

Posted on February 13, 2013 by Marc Cesare

In the competitive high-end recreational side-by-side market segment Polaris is introducing two more limited edition RZR XP 900 models. Retailing for $17,799 the models should be available at local dealers in February.

2013-Polaris-RZR-XP-900-White-Lightning-Orange-Madness-Blue

A new Limited Edition RZR XP 900 EPS White-Lightning/Orange Madness-Blue

2013 RZR XP 900 EPS-White Lightning/Orange Madness and Blue

Additional features on the limited edition model include:
??? Electronic Power Steering
??? White Lightning painted dash and hood
??? Custom graphics package
??? Custom three-color cut & sew Black, Orange Madness and White seats with RZR emblem
??? Color matched painted front and rear suspension springs
??? Orange Madness painted control arms, trailing arms and radius rods
??? Baja Cross tires on 12-inch Black Crusher aluminum rims

2013-Polaris-RZR-XP-900-White-Lightning-Evasive-Green

A new Limited Edition RZR XP 900 EPS White-Lightning/Evasive-Green

2013 RZR XP 900 EPS-White Lightning/Evasive Green
Additional features on the limited edition model include:
??? Electronic Power Steering
??? White Lightning painted dash and hood
??? Custom Evasive Green graphics package
??? Custom two-color cut & sew Black and Graphite STX seats with RZR emblem
??? Maxxis Bighorn tires on 12??? Black Crusher aluminum rims

Polaris 4Q 2012 Earnings Report & Conference Call

Posted on February 6, 2013 by Marc Cesare

Last week Polaris reported another strong quarter and year for 2012. They continue to lead the UTV market and are now making inroads in the LSV market with their GEM acquisition. ??Polaris increased fourth quarter sales 15% to a record $900 million. Fourth quarter net income and earnings per share both increased 38% to $88.1 million and $1.24 per share, respectively. Full year 2012 sales increased 21% to a record $3.2 billion and net income increased 37% to $312.3 million. Net margins reached a record 9.7% and earnings per share rose $4.40, up 38%. Several days after the call management announced that the quarterly dividend would be raised by 14% to $0.42 a share. Some other highlights from the conference call:

??Revenue in the Off-Road Vehicle (ORV) segment grew 22%, powered by over 20% growth in North American side-by-side sales which outpaced the expansion of the overall market that was estimated at low teen percent.
While fourth quarter wholesale sales to Bobcat decreased, the full year retail sales there increased upper-single digits. 2012 milItary segment sales were flat.
Sales from GEM and Goupil increased over 50% in the fourth quarter with GEM up double-digits and orders up even more as distribution increased and a revamped 2013 model line-up was introduced.??
Overall revenue is expected to increase 7-10% in 2013 with net income and earnings per share projected to increase in the range of 10% to 15% over 2012.
The management expects a slowdown in the rate of growth in the UTV/side-by-side market but still expects the overall market to grow.
Sales of Off-Road Vehicles are expected to increase in the high-single digits percent range with retail sales of side-by-side vehicles and ATVs continuing to outpace the overall market, both in North America and internationally.
Europe and Middle East sales in the ORV market are expected to decline because of economic conditions.
A new $50 million manufacturing facility will begin construction in Europe in the first half of 2013 to cut costs, better match products to the local markets and alleviate anticipated production constraints in current facilities. It will be a 325,000 square foot facility for welding, painting and assembly of ATVs and UTVs. Production will begin in the second-half of 2014.
An India plant will also be built as part of their joint venture with Eicher with production expected to begin in 2015.
??The new RZR XP900 Jagged X was well received by dealers and sold out of it’s initial allotment within 24 hours.
Over 150 GEM dealers were added in 2012 ??and 2013 revenue is expected to grow double digits with a focus on growing B2B customers.
For Goupil, a new G5 hybrid product is launching in 2013.

Read the earnings call transcript: ??Seekingalpha.com

PGA Merchandise Show Highlights

Posted on January 30, 2013 by Marc Cesare

I was at the PGA Show last week in Orlando, FL that features a wide range of products and services pertaining to golf, including small, task-oriented vehicles and related products. ??I will be posting about some of what I saw there throughout the week.

New from Yamaha??– Yamaha introduced their new Adventurer Sport vehicles at the show as well as featuring their electronic fuel-injected Concierge 4 and Personal Transportation Vehicle (PTV).

The new 2013 Yamaha Adventurer with flip-down rear seat that converts to utility configuration.

: The new 2013 Yamaha Adventurer Sport 2+2 with electronic fuel injection

2013 Yamaha Adventurer Sport with 20 inch all terrain tires

The new Adventurer vehicles feature a beefier suspension, increased ground clearance, 20-inch all terrain tires and electronic fuel injection. The vehicles are targeted for off-road users with agriculture, estate and general utility needs and will be available March 1. Electronic fuel injection is an important feature that is appearing in more and more small, task-oriented vehicles. In an upcoming post I’ll talk more about this and other STOV trends I saw represented by new products at the show.

Dealer Survey Lowers Analyst Sales Expectations For Arctic Cat

Posted on January 3, 2013 by Marc Cesare

A recent survey of dealers by analysts at BMO Capital Markets indicates that Arctic Cat may be experiencing lower than expected sales growth. ??They have lowered their annual sales growth targets from 15% to 10% for the next two years based on information from dealers around the country. ??While the estimates refer to total sales across all segments, the side-by-side segment is commented about specifically. ??Strong sales in the high end Wildcat recreational side-by-side have slowed and not driven sales of lower end utility vehicles as much as expected. ??Arctic Cat is in tough competition with Can Am for the second spot in the recreational segment behind Polaris but should benefit from their four-seat Wildcat hitting the market next month. ??Learn more: ??Powersportsbusiness.com

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