Polaris Acquires Small Vehicle Manufacturer Aixam Mega

Aixam Quadricycle

Aixam Mega Utility Truck

Polaris Industries announced the acquisition of Aixam Mega, a leading manufacturer of quadricycles and light commercial vehicles based in France. The acquisition adds to the company’s portfolio of small, task-oriented vehicles which includes GEM LSVs and Goupil commercial vehicles and increases their footprint in Europe as management targets international markets for future growth. In addition, the acquisition puts Polaris in a strong position in the personal transportation segment of the small vehicle market in Europe while adding to their commercial market presence.

Quadricycles are a class of vehicles characterized by limits on vehicle weight, top speed and engine power. Light quadricycles have a top speed of 45 kph and can be driven without a license in Europe depending on the regulations of the individual country. In France they have a classification similar to mopeds. There is also a heavy quadricycle classification that requires a license to drive. Aixam Mega has annual sales of approximately $110 million.

Aixam Mega offers a diverse lineup of small vehicles covering personal transportation and commercial vehicles, light and heavy quadricycles and ICE and electric powered vehicles. Their product lines include the Aixam line of quadricycles for personal transportation and their Mega brand of light commercial trucks and vans. They recently launched a new lineup of all electric models for personal transportation. Their Mega utility vehicles feature both diesel and electric powered versions of trucks and vans.

According to company information Aixam Mega is the market leader in Europe selling approximately 10,000 to 12,000 quadricycles of the personal transportation variety annually with about half being sold in France. The company has a network of about 400 dealers throughout Europe and two production facilities in France. Their Mega brand of light commercial trucks and vans are distributed internationally including in the US through Columbia ParCar.  Learn more:  TwinCitiesBusiness

Comment:  The regulations in Europe are more favorable for on-road small personal transportation vehicles than in the US where LSV regulations and road access are more restrictive. It will be interesting to see if Polaris tries to modify and export the Aixam personal transportation line into the US as an LSV. In contrast to many of the current LSV offerings on the market which still have a golf car like styling, the Aixam offers a more traditional automobile styling.  On the other hand, the US LSV market is still largely commercial oriented and the personal transportation segment may be too small for the effort without changes to regulations allowing for higher speeds.

In the commercial segment, the Polaris network of dealers, especially those already offering GEM vehicles, provide an opportunity to expand the US distribution of the Mega commercial vans and trucks. The configurations of the Mega utility trucks are a nice complement to the GEM product offerings and I can envision dealers being able to sell both lines to a customer with a range of small vehicle needs.

 

Strong Growth In India’s Mini-truck Market

A recent article outlines the factors driving India’s booming mini-truck market.  The introduction of the Tata Ace mini-truck in 2005 established a new sub-segment and marked the beginning of a long-term growth trend in India’s Light Commercial Vehicle (LCV) market.  These sub one-tonne vehicles along with 2-3.5 tonne pick-ups form the Small Commercial Vehicle (SCV) sub-segment of the LCV market (up to 7.5 tonne) accounting for an estimated 90% of the LCV goods segment and 75% of the total LCV market.  Since 2005 sales of SCVs have grown at a compounded annual growth rate (CAGR) of 22%.

The growth of the four-wheeled SCVs have come at the expense of three-wheeled vehicles which saw their share of the LCV market decline from 71% in 2005 to 23% in 2012.  The four-wheeled vehicles offer more payload capacity, more range, improved safety, better emissions, lower costs and greater social status.  Besides three-wheel vehicle replacement sales are being driven by increased consumer spending and more widespread use of the hub and spoke model to deliver goods.  In addition, regulations are limiting the use of large trucks in cities and low capital costs and operating expenses are enabling entrepreneurs to purchase the vehicles.

The growth trend for the vehicles is expected to continue at a 17-18% CAGR over the next five years as the underlying factors such consumer spending, more sophisticated retailing, regulatory trends, expanding rural and semi-urban markets and growing entrepreneurism are forecasted to continue.  Not surprisingly the success of the Tata Ace and strong market growth has attracted other market entrants such as Mahindra’s Maxximo offering more power and payload, and vehicles from Force Motors, Piaggio and a joint venture between Nissan and Ashok Leyland.  More competition is expected.  Learn more:  mydigitalfc.com

Sevcon Chosen As Controller Supplier By Chinese EV Maker

AUCMA Electric Vehicle Co. Ltd has selected Sevcon to provide motor controllers for their new light truck, the A-2.  The China-based EV manufacturer will use Sevcon’s Gen4 digital motor controller with regenerative braking in the A-2.  The A-2 features a 70 volt 16kw AC motor and has a range of 150 km and a top speed of 50 km/hr.  The vehicle is designed for municipal fleets and can be configured as a flatbed or cargo box.  The company is targeting domestic and export markets such as the US where partially assembled vehicles will be shipped to California for further assembly. Learn more:  Marketwatch.com

PMMC, Electric Scooter Manufacturer, Enters STOV Market

Pihsiang Machinery Manufacturing Co., Ltd. (PMMC), a Taiwan-based electric scooter manufacturer has developed products for the mini city car and minitruck markets.  According to management they expect to ship 5,000 of the their “Achensa” branded all electric vehicles.  Northern European markets such as the Netherland, France, Germany, and the U.K. are the first export markets being targeted.  Small production runs are expected later this month or in June.  Learn more:  CENS.com

Mini-truck Market In Bangladesh

Reports from Bangladesh indicate a small but fast growing mini-truck market. In 2011 the market was estimated to be 8,500 vehicles and the Tata Ace mini-truck, manufactured in neighboring India, accounts for over ninety percent of the market.  Tata started selling their mini-trucks in Bangladesh in 2009, selling 3,500 vehicles that first year.

The local distributor Nitol Motors attributes their sales success to growing demand across many industries and a reduced down payment for purchasers.  Instead of requiring a 50% initial payment, they only require 30% and sometimes as low as 20%.  This has enabled local entrepreneurs to start their own goods shipping businesses.  According to Nitrol Motors half the market is for this type of business and the other half for general business use.  Buyers are most concerned with the initial payment costs instead of total vehicle costs.   The success of the Tata Ace has also taken a large chunk of the used and reconditioned mini-truck market.  Learn more:  Thedailystar.net

Viridian Motors: Electric Truck Start-up

Viridian Motors of Virginia expects to enter the small, electric utility truck market early next year.  Similar in design to a mini-truck, the Work Ready truck comes in two models, the WR100 and WR200, has a top speed of 25 mph and is priced at $13,500.  Target markets include farms, golf courses and apartment complexes.  The vehicle is a mix of US and China sourced parts with the assembly being performed in Norfolk, VA.

According to the company president Terry Langhorne the chassis and cabin are made in China and Chinese sourced parts constitute 15-20% of the sales price.  Parts sourced from the US include electric AC motor, controller, contactor, wiring harness, seats, transaxle rear end, fuse links, tires, brake lines, interior sheet metal components, steel chassis modifications, 12v battery system, throttle plates, gauges and dashboard switch assemblies.  Learn more:  Hamptonroads.com

Road Use Regulations Roundup – November, 2011

Some trends in this latest regulation roundup:

  • A lot of action the past few months on ordinances allowing ATVs, UTVs, mini-trucks and modified and sometimes un-modified golf cars on public roads.  While some concerns about safety still persist, we may be looking at an expansion of the type of small, task-oriented vehicles that are allowed on public roads.
  • With Nebraska passing a LSV law and Pennsylvania in the process of passing one, only Connecticut, Mississippi and Montana (no LSV but an MSV law) have not passed an LSV law.
  • Higher ordinance activity areas:  Minnesota which is usually active and Ohio which is a relative newcomer
  • Some more activity at the county level in the past few months

State Level Regulations

Pennsylvania – State House of Representatives unanimously passed a bill that

“…authorizes travel in NEVs on roadways with a posted speed limit of no more than 25 mph and allows NEVs to cross roadways posted with a higher maximum speed. They can only be operated during daylight hours. NEVs will be required to be equipped with most basic safety equipment, such as brakes, mirrors, seatbelts, windshield and wipers, speedometer, odometer, headlamps, stop lamps, turn signals and reflectors, and a slow-moving vehicle emblem. In addition, NEV drivers must possess a valid license certificate of title, registration and insurance.”

The state is one of only a few that have not passed a LSV law yet.

Nebraska – The governor signed a law allowing NEVs/LSVs on low speed roads.  LSV owners will be required to have a valid operator’s license and liability insurance coverage. The vehicles will be subject to titling requirements, a registration fee of $15 and a new alternative fuel fee of $75 for vehicles using a source of energy not taxed under the motor fuel laws. The alternative fuel fee will replace the alternative fuel tax.

Louisiana – State legislature is debating allowing mini-trucks on public roads.

 Municipality Level Regulations

Wapello, IA – City council is discussing allowing golf cars and utility vehicles on city streets and receiving a mixed reaction from residents.

Sunman, IN – City council will allow golf cars on city streets. Vehicles need to be inspected and have safety features like turn signals, safety belts, reflectors and slow moving vehicle emblems.

Marathon, FL – City allows modified golf cars on low speed streets.  Under the auspicies of the state statue, any golf car meeting the safety and speed requirements will be able to use streets with a speed limit of 35 mph or less.  A city ordinance with different requirements would of required the city to do their own licensing and other onerous administrative duties regarding the vehicles.

Dundee, IL – Village Trustee is pushing the town to revisit the idea of allowing NEVs and LSVs on low speed village roads.

Lauderdale-by-the-sea, FL – The town is creating four parking spaces in their commercial area specifically for use by NEVs.

Augusta County, VA – Supervisors passed an ordinance allowing golf cars and utility vehicles on country roads with speed limits of 25 mph or less.

Bryan City, OH – Initiated ordinance that allows “neighborhood electric vehicles, urban electric vehicles and golf cars/carts” which have been modified to meet certain criteria to use roads with speed limits up to 25 mph.   Driving hours on public roads for the vehicles is limited to daylight hours.

Findlay, OH – City is considering allowing modified golf cars on low speed city streets.

Tecumseh, NE – Town council allows the use of ATVs and UTVs on city streets.  The ordinance allows ATVs and utility vehicles during daylight hours for licensed drivers with liability insurance. Vehicles must be equipped with a bicycle safety flag and not exceed 30 mph.

Riverside County, CA – The governor of California signed legislation that lets Riverside County open up more low speed roads for low speed vehicles.

Mankato, MN – City passed an ordinance that allowed UTVs and mini-trucks on city streets.  Lower speed golf cars were removed from the ordinance.

Canyon Lake, CA – LSVs/NEVs will not be allowed to use Railroad Canyon Road because of safety concerns related to the vehicles mixing with faster traffic.

Polk County, MN – County commissioners passed an ordinance that authorizes the use of four-wheel ATVs, mini trucks and golf carts on county roads.

Morris, MN – City council is considering an ordinance that allows ATVs, UTVs, mini-trucks and golf cars on city streets.

Reedsburg, WI – City council amended an ordinance to now allow gas as well as electric LSVs on public roads.

Polaris Makes Another Move In The EV Market – Acquires Goupil Industrie of France

Goupil industrie electric truck

Goupil Industrie electric truck

Diversifying their portfolio of electric vehicle offerings, Polaris Industries recently purchased Goupil Industrie SA.  The privately owned French manufacturer produces a line of light duty electric trucks for a variety of commercial uses.  There were no comments by management on whether the Goupil product line would be exported to or produced in the US.

This is the third major transaction in the small electric vehicle space by Polaris this year following the acquisition of GEM and a major investment in Brammo, an electric motorcycle manufacturer known for electric powertrain expertise. The work and hauling oriented Goupil product line will complement the more people mover oriented GEM line.   Goupil’s estimated annual sales of $25 million adds to the estimated $30 million in annual sales that Polaris gained from the GEM acquisition.

Comment:  After testing the LSV market with their Breeze model for personal transportation and the electric UTV market with their electric Ranger, Polaris has now moved decisively into the space.  Management sees the global market for small electric vehicles as a growth area and have executed on that belief by purchasing this manufacturer in France and initiating GEM distribution in India.  Polaris now has a range of small EV product offerings spanning off-road and on-road, consumer and commercial, as well as work and transportation applications.  Learn more:  BizJournals.com

In related news, I noticed that Polaris also has a new website for GEM.  On their home page it is accessible under the tab “Low Emission Vehicles” along with the Breeze LSV.

STOVs For The Farm or Ranch

I came across a couple of stories about the use of small, task-oriented vehicles on farms/ranches.  One considered the virtues of UTVs over ATVs while the other discussed the advantages of mini-trucks over UTVs.  In the former, the rancher fashioned his own fencing attachment for his UTV that would allow him to carry all the necessary tools and material for fixing fences. The story also noted that UTVs were safer and lasted longer than ATVs.

In the other story, the enclosed cab of the mini-truck in inclement weather was a big plus compared to UTVs. Also noted was the cheaper cost and higher speed for traveling long distances between fields.

Learn more:  Cattlenetwork.com     Ozarksfn.com

News Briefs

Applied Geo Technologies Wins Club Car Supplier Award – Applied Geo Technologies recently received the 2011 Overall Operations Excellence Award from Club Car. The company supplies Club Car with cabling and wiring harnesses for all of Club Car’s golf, transportation and utility vehicles.  Learn more:  Cisionwire.com

Garia Review – Last week the Los Angeles Times published a short review of the Garia LSV.  Learn more:  LATimes.com

Tata Motors Launches Two Light Commercial Vehicles – Today Tata Motors launched the passenger carrier Magic Iris and a micro truck the Ace Zip.  Both vehicles are for India’s domestic market.  The vehicles are lesser versions of the Ace Magic and Ace respectively.  The company plans to launch CNG powered variants in the future.  Learn more:  Business-Standard.com