A recent story about the energy plans of a Wisconsin town highlight a continuing trend in the STOV market.?? Whether it is municipalities, universities or federal agencies, the drive to more efficiently use energy and/or be more “green” is increasing the demand for electric powered low speed vehicles.?? In this case, the replacement of fleet vehicles with NEVs is one of a number of initiatives that the town of Oconomowoc is using to reduce their energy consumption.?? Learn more:?? istockanalyst.com
Category Archives: market trends
Kawasaki Adds Special Graphic Edition Packages for Teryx 750 FI 4×4
Kawasaki has added four special edition graphic packages for their 2010 Teryx 750 FI 4×4.
These unique new immersion graphics packages offer a unique diamond plate pattern that is chemically bonded to colored basecoat paint.?? The finished product offers a durable, high-gloss, automotive quality surface that looks similar to anodized aluminum diamond plate, but is actually smooth to the touch and easy to clean.
The graphic packages are available in Diamond Blue, Diamond Red, Diamond Silver and Diamond Black and increases the color options for the Teryx recreation utility vehicle to ten in total.?? Learn more:?? UTVWeekly.com
More Bad Boy Buggy News
Bad Boy Enterprises just announced that three of their vehicles, the Classic, XT and Stretch, are now qualified by the IRS as street-legal LSVs.?? Each vehicle is eligible for a federal tax credit of $5,590.?? Management reports that tax credit driven sales have, in part, caused them to increase their projected annual sales from $17 million to $20 million.?? In addition, they report a 1,000 orders for their new XT vehicle and a positive response from their five-store market test with Bass Pro shops.?? The retailer wants to roll-out the program with an additional 15 stores in the next three months.?? Bad Boy is also talking with retailer Cabela’s about selling their vehicles.?? Learn more:?? Natchezdemocrat.com
Textron Eyeing China Factory
Last week a story from a Chinese business news service reported that Textron, manufacturer of E-Z-Go vehicles is looking into establishing a plant in China for the production of LSVs.?? The company would partner with a Chinese automaker and produce neighborhood electric vehicles powered by lead acid batteries.?? The plant would have the potential to produce 10,000 vehicles annually.?? The story noted that the Chinese market for NEVs could be ripe given government incentives and their desire for developing clean vehicles.?? There was no mention of exporting the vehicles to the US.?? Learn more:?? blogs.edmunds.com/greencaradvisor
Oklahoma LSV Tax Credit Update
Yesterday a county judge in Oklahoma ruled in favor of vehicle purchasers, declaring that they could receive the state tax credit for the LSVs that they purchased.?? The lawsuit was brought by Ada Electric Cars and H20 Sports Unlimited and other dealers joined as well including GKU Electric Vehicles LLC, Heartland Outdoors LLC, Pat???s Archery Inc., and Xtreme Cycle and ATV LLC.
The judge’s order states low-speed vehicles sold by manufacturers Tomberlin, Ruff & Tuff, Stealth, Fairplay and Bad Boy Buggie qualify for a state tax credit.?? The order also includes, ???any other low speed vehicles similarly equipped as those described above qualify for … ??? the state tax credit. Specific models noted in the order include Tomberlin E-Merge E-2, Tomberlin E-Merge E-4, Tomberlin Anvil, Tomberlin E-Merge Classic, Ruff & Tuff NEV2, Ruff & Tuff NEV4, Ruff & Tuff Cruiser EV2, Ruff & Tuff Cruiser LX2, Ruff & Tuff Cruiser LX4, Ruff & Tuff Hunter 4×4, Stealth Patriot LSV, Stealth Patriot LSV 4 X 4, Fairplay EVE, Fairplay Goat and Bad Boy Buggie XT LSV.
The Oklahoma State Tax Commission responded to the announcement by stating that it would appeal the ruling.?? The commission stated that the tax credits could cost the state more $40 million.?? If this is true, at the high end an average tax credit of $8,000 per vehicle translates into 5,000 vehicles sold in the state and at the low end an average tax credit $4,000 per vehicle translates into 10,000 vehicles sold in the state. In either case the figures represent an enormous boost to the LSV market. – Marc Cesare
Electric Utility Vehicles Showing Strong Growth
Despite the economic downturn the market for off-road electric utility vehicles, especially for hunters, is experiencing strong growth.?? A recent story about Stealth Manufacturing reports that in 2008 the company sold 600 vehicles, five times the sales management expected.?? Demand has continued to be strong in 2009 with management reporting that their
..entire production is sold out through Dec. 31.?? We???ve outrun virtually every supplier we have.
Part of the growth of the Louisiana based company is attributed to their television sponsorship program with Primos Hunting Products. Stealth produces the Predator XR, Apache XR and the “Izzy” an industrial vehicle.?? They are also planning to launch the Patriot LSV which went into production last week.?? The company employs 38 people in a 82,000 square foot facility and is looking to expand their distribution beyond the current 70 dealers and distributors in 28 states. On the horizon is a new vehicle about which the CEO Bill Krutzer states
It???s probably going to change the complexion of the electric vehicle industry, and we???re testing it right now.?? It???s a completely different electrical platform. We???re going to bring some pretty sophisticated technology to the game, and we???re not going to do anything but improve the price.
Stealth Manufacturing is not the only electric utility vehicle manufacturer with a positive outlook.?? The leader in the electric utility vehicle market for hunters,?? Bad Boy Buggies, is expected to reach sales of $17 million this year, up from 2008, but down from a peak in 2007 of $20 million.?? Despite a recent recall of their standard model the company is reports that their new XT model has been well received. They are also launching an LSV model and have had success selling their utility vehicles outside the hunting market.?? A key marketing effort for them is teaming up with Bass Pro Shops which is running a test campaign in five markets.
Learn more:?? Natchezdemocrat.com
A few weeks ago I had the opportunity to talk with Eric Burns of Bad Boy Buggies. He talked about some of their improvements in their new XT model which at the time had a waiting list of customers.?? The improvements include:
- An independent suspension for better performance and comfort in extreme conditions and/or extended operating times
- Better turning radius
- Re-routing of electrical cables to protect them from the elements
- Improved distribution of battery weight that impacts performance on?? steep climbs
- General improvements to the construction and design of the vehicle
Some of the non-hunting markets they are looking for gains in include agriculture such as dairy farms, government fleets and construction.?? Burns noted that in some of these environments the electric utility vehicle allows an operator to more easily hear other vehicles in the work area, use walkie talkies or other communication devices without turning off the engine and avoid the necessity of storing fuel on site.?? Key obstacles for electric utility buyers are battery replacement costs and the range of the vehicle, which in many instances may be a perceived issue rather than actual. Bad Boy Buggies is looking to expand their distribution network in the Western US from their current strongholds in the South, Southwest and Midwest, usually centered around hunting communities.
Additional signs of strength in the electric utility vehicle market include the recent entry of Polaris, the utility vehicle market leader, and Tomberlin’s plans to launch their electric utility vehicle, the Vanish.
On a related note, the fact that both Stealth and Bad Boy Buggies are coming out with LSV versions indicates an interesting sub-segment is developing in the LSV market.?? Rather than vehicles that are primarily or exclusively used on-road, another segment of users that need a mix of off-road/rough terrain capabilities and public road access is emerging.?? Burns of Bad Boy Buggies noted military bases, farms and college campuses as potential buyers of these street legal UTVs. – Marc Cesare
CT&T Reports $400M In Orders For 38,000 EVs
At the Tokyo Motor Show last week South Korea based CT&T announced orders and distribution agreements worth $400 million for 38,000 of its e-Zone EVs.?? The e-Zone is configured as an LSV for the US market but can have a top speed of 44 mph. The vehicle’s range is 41 and 68 miles with the lead-acid and lithium in battery packs respectively.
The vehicles are expected to begin shipping next month with 27,000 bound for the US.?? Another 5,000 are headed for Canada, 4,000 for Japan and 2,000 for Taiwan.?? This production volume is expected to be fulfilled at the end of first quarter 2010.?? The vehicles will be delivered as complete units until CT&T’s Regional Assembly and Sales Systems(RAS) are developed.?? The company is currently looking in the Pittsburgh and Philadelphia areas to locate two such regional assembly and distribution centers.?? Learn more:?? Greencarcongress.com
CPSC Announces Proposed Rules For Recreational Off-Road Vehicles
The U.S. Consumer Product Safety Commission (CPSC) has published an advance notice of proposed rulemaking (ANPR) to address safety hazards associated with Recreational Off-road Vehicles (ROVs).
CPSC staff???s preliminary evaluations indicated that the vehicles may exhibit inadequate lateral stability, undesirable steering characteristics, and inadequate occupant protection during a rollover crash.
The review of ROVs, sometimes called utility vehicles or side by sides, by the CPSC was initiated by numerous incidents related to the Yamaha Rhino including a number of deaths. (CPSC distinguishes between ROVs and utility vehicles with the former operating at speeds over 30 mph and the latter under 30 mph) The CPSC conducted tests from November 2008 to January 2009.
The ROV manufactuers, through the Recreational Off-Highway Vehicle Association (ROHVA), proposed their own standard in December 2008 but this was rejected by the CPSC, as they found preliminarily…
Based on the continuing deaths and injuries involving ROVs and a review of the draft requirements currently proposed by the ROHVA, CPSC staff believes that the proposed voluntary standard will not adequately address the deaths and injuries associated with ROV rollovers and collisions. Additionally, there are many safety features or characteristics that can be incorporated on ROVs to make them more stable and safer to use.
The CPSC identified three key areas of ROV design that impact safety:?? static stability factor (SSF),?? vehicle handling and occupant?? retention and protection.?? One change the CPSC has talked about with the ROHVA is having vehicles meet a specific SSF value.?? Learn more:?? CPSC.gov
Golf Car Fleets Going Solar
Jockey Club Kau Sai Chau Public Course in Hong Kong and the Sebonack Golf Club in Southhampton, N.Y recently became the first golf courses to completely power their golf car fleets with solar power.?? Both fleets used Club Car’s SolarDrive system to retrofit their existing Club Car fleets.?? Management expects to reduce costs in the long-term through energy savings.?? The Hong Kong facility converted 205 golf cars and the club in New York converted 40 golf cars. The solar panels typically cost about $2,700 but can be eligible for tax incentives as well.?? they are supplied by SolarDrive of Denmark that has a marketing partnership with Club Car. Learn more:?? Golfcarnews.com
Comment: While capital costs for retrofitting may be an issue for some fleet managers, if savings can be realized in a reasonable amount of time this type of product will be another factor in the continuing trend towards more electric powered golf cars.?? Combined with the recent introduction of golf cars with AC drive and increased environmental concerns the trend towards electric could significantly accelerate. – Marc Cesare
Battery Developments and Implications for STOVs
The ongoing development of battery power holds significant potential for small, task-oriented vehicles (STOVs).?? Most of the development and most discussion and analysis of battery development is in the context of powering on-road vehicles.?? The crumbs off the table of this development process, however, could have a significant impact on market development of small, task-oriented vehicles.
STOVs are certainly not confined to electric power, but given the trend toward electric power in all but the off-road UTV (and derivatives) market???and that is coming, too???as well as the market drivers pushing toward electric, a focus on electric power is hardly unjustified.
In a presentation at the Industrial Utility Vehicle Technology Conference, I outlined four areas of product development that were needed to encourage market growth of the small, electric vehicle market.
- Greater range, moving from 30-40 miles to 100 miles;
- More power, deliverable through the adaptation of AC electric motors;
- Faster speeds, increasing from the upper limits now of 25 m.p.h. to the 40-45 m.p.h. range;
- Better ergonomic features, including all-weather driveability.
The ensuing years have seen improvements in all categories.?? – Steve Metzger