More Indicators of Strong UTV Market

A couple of more news items point to continued strength in the UTV market with increased sales from new models and more widespread applications.

An analyst from Felt and Company raised their revenue expectations for Arctic Cat and reiterated their Buy recommendation in part on the strength being seen in the market from both dealers and consumers from the new 50 inch Wildcat side-by-side. (Note: This was before the recent patent lawsuit was filed against Arctic Cat by Polaris) Learn more: Powersportsbusiness

The recent GIE + EXPO and Hardscape North America dual trade shows in Kentucky saw an increased presence from UTV manufacturers. UTV manufacturers attending included Bad Boy Buggies/E-Z-GO/Cushman, Bobcat, BV Powersports, Cub Cadet, Deere, JCB, Kubota, Sunright International and Polaris.  The trade shows feature outdoor power equipment, along with products for landscapes, gardens, outdoor leisure, hardscapes and light construction. Learn more:  Powersportsbusienss.com

Club Car Launches Newly Overhauled Line Of Carryall Utility Vehicles

Club Car has launched a new line of Carryall UTVs.

Club Car has launched a new line of Carryall UTVs.

New Carryall UTV from Club Car

New Carryall UTV from Club Car

Club Car announced their new line of Carryall utility vehicles which feature significant changes to the vehicles. One key feature of the line is a new engine developed by Subaru.

The 14-hp-rated, 404-cc, single-cylinder overhead cam engine features electronic fuel injection (EFI), capacitive discharge ignition (CGI), hemispherical heads and a case-hardened steel timing chain that enhances reliability. A splash lubrication system that eliminates the need for oil filters simplifies maintenance and reduces environmental waste.

The engine will be warrantied for 3 years and 3,000 hours, up from the previous 2 years and 2,000 hours. The product line will continue to have an aluminum frame, rack and pinion steering and independent front suspension. Other key features include:

  • 30% more horsepower and 50% more fuel efficiency
  • Electric models have an inboard solid state charger that is programmable for different algorithms depending on battery type i.e. flooded lead-acid or AGM and 10% more efficient than the previous one
  • Movable bed dividers and cargo tie-downs and ability to accommodate ladder racks, bucket holders and other accessories
  • Rhino lining for the cargo bed floor is standard
  • New body and interior styling for better ergonomics and usability
  • Integrated halogen headlights with an LED option
  • Optional cab designed to integrate with vehicle design
  • A street-legal LSV model configuration and six passenger Transporter model

Learn more:  PRWeb.com

Comment:  The product line is being marketed as a replacement for pickup trucks in the commercial and industrial markets. This is a fast growing segment in work segment of the UTV markets. The savings is not so much in the front-end costs but all the insurance, maintenance and fuel costs during the life of the vehicle. UTVs like the Carryall can also offer productivity improvements as they can prove more versatile and better access work areas than larger pick-up trucks. The electric vehicles are particularly popular with colleges/universities, parks and municipalities that have green or sustainability policies. This is one of the reasons that the UTV market has continued to grow at a good pace despite a slow economic recovery.

Arctic Cat Launches Wildcat Trail UTV

The new 50-inch wide Wildcat Trail XT from Arctic Cat

The new 50-inch wide Wildcat Trail XT from Arctic Cat

Arctic Cat introduced their new 50-inch wide Wildcat Trail and Trail XT UTVs. The models are designed for narrower trails and feature a new Arctic Cat-designed 700 inline twin with EFI, 4 valves per cylinder and liquid cooling. The 700cc 60-plus horsepower engine was designed specifically for the Wildcat Trail chassis. Other key features of the vehicle include:

  • 10 Inches of ground clearance 10.5 Inches of rear suspension travel
  • The Wildcat Trail and Trail XT models get double a-arms front and rear sporting top quality FOX nitrogen charged shocks all the way around.2-Inch receiver
  • Digital gauge with14 indicators: clock/hour meter, fuel level, mode button, set/reset button, odometer/trip, gear position, speedometer/tachometer, needle display, differential lock, high beam, temperature and oil pressure.
  • Color-matched bucket seats
  • Tilt-steering
  • Passenger handholds
  • Selectable on-the-fly 2WD/4WD with locking front differential
  • TEAM® Rapid Response Clutch
  • 12” rims with 4-ply, Carlisle Trail Pro tires, designed exclusively for the Wildcat Trail.
  • 300 lb rear cargo box capacity

The base model has an MSRP of $10,999.

Learn more: Arcticcat.com

Comment:  These vehicles will give riders access to some of the ATV trails, particularly in the East and other regions with trail networks in forests that have historically been too narrow for side-by-sides. In some areas these trails have numerous gates that make it impossible for wider side-by-sides to use the trails. In certain parts of the country this will likely further erode the ATV market which has seen consumers swap UTVs for ATVs over the last several years. Designed to compete against the Polaris RZR 800, it will be interesting to see the competition between these companies and others plays out in this segment of narrow width UTVs.

 

Polaris Introduces The New Ranger XP 900 Deluxe

The new Ranger XP 900 Deluxe in nuclear sunset orange from Polaris.

The new Ranger XP 900 Deluxe in nuclear sunset orange from Polaris.

The new model features cockpit changes from the Ranger XP 900 EPS on which it is based.

The new model features cockpit changes from the Ranger XP 900 EPS on which it is based.

Polaris announced their latest addition to the Ranger product line, the Ranger XP 900 Deluxe in nuclear sunset orange. Based on the Ranger XP 900 EPS the new vehicle includes the following changes:

  • The bench seating is replaced with ‘bolstered cut-and-sew bucket seats’ with an adjustable driver’s seat
  • Center console with integrated storage
  • Color-matched half doors for protection from branches and mud
  • Factory installed in-dash audio system

The Deluxe model had a 1,000 lb cargo box capacity and 2,000 lb towing capacity. The MSRP is $16,499 for the base version.  Learn more:  Polaris.com

Comment:  Polaris continues to pump out new models targeting different slices of the market. While the recreational and crossover UTV segments have become more competitive with other companies introducing new models as well, no company seems to be able to match the speed and volume with which Polaris brings new models to the market. Their product development cycle is one of the reasons they continue to be the dominant brand in the market.

Polaris Announces Military Grade ATV

The new military grade ATV from Polaris, the Sportsman WV850 H.O. with Terrain Armor tires.

Leveraging their growing military business, Polaris recently launched a new military-grade ATV featuring Terrain Armor™ Non-Pneumatic Tires (NPT). The new Sportsman® WV850 H.O. with Terrain Armor will be available in “very limited quantities” in December 2013 for consumers looking for a work vehicle.

The non-pneumatic tires were first developed for military applications. Polaris has won a number of contracts to supply US and allied militaries with ATVs and UTVs for use in combat environments and started offering the NPTs earlier this year. Polaris has tested NPTs under several extreme situations, including logging more than 350 miles/563 kilometers after receiving fire from a 50-cal round, and driving 1,000 miles/1609 kilometers with a 3 in/7.6 cm railroad spike in the tread and webbing. The vehicle is designed for extreme work or hunting conditions and also features upgrades to the transmission, shocks and cooling.

Taking less than a year to move the technology over from the military to the consumer market is impressive. I contacted a Polaris representative about any military grade UTVs in the works but they said they were not aware of any. However, it would seem to be the next logical step. Potentially, you could see the tires useful for not only work but recreational riding in more extreme terrain. Learn more:  Businesswire.com

Arctic Cat F2Q 2014 Earnings Summary

The new 50-inch Arctic Cat Wildcat is expected to ship in the second half of the fiscal year and help drive sales.

Arctic Cat sales increased a modest 4% for the quarter but side-by-side sales were strong. The following are some highlights from the earnings call with a focus on the side-by-side market.

  • Net sales for the second quarter increased 4% to 238.5 million from 229 million for the same quarter last year.
  • ATV sales, which includes ATVs and UTVs, increased 4% to 72.7 million driven by Wildcat and Prowler side-by-side sales.
  • Parts, garments and accessory sales decreased 1% to 30.4 million from 30.8 million.
  • Year-to-date net sales increased to 5.6% to 359.3 million from 340.3 million and net earnings increased 7% to 28.8 million from 27 million
  • Internationally Europe remains a difficult market but sales to Australia, Mexico and some of the Middle East and Latin American countries are up.
  • On a year-to-date basis ATV sales increased 4% to 149 million and parts, garments and accessory sales increased 2% to 52.3 million from 51.1 million.
  • For the quarter side-by-side retail sales increased by 23% driven by significant increases in the new Wildcat models, and the new Prowler HDX500 utility model.
  • There has been a net increase in the dealer network for Prowler and Wildcat product lines with the increase for the Wildcat line the largest.
  • Year to date R&D expenses increased 24% as management focuses on new product development, especially for side-by-sides.

Looking forward

  • Management expects sales to be in the range of 754 million to 768 million, an increase of approximately 12% to 14% versus fiscal ’13.
  • Arctic Cat will launch three new Wildcat side-by-sides in the next 6 months including the previously announced 50-inch Wildcat. Shipments for the other two new Wildcats are expected to begin in Q3 with dealer orders starting in November.
  • Off-road vehicles expected to be up 25% to 29% for the year.

Learn more:  Seekingalpha.com

GEM Introduces New Electric UTV: GEM eM1400

The new GEM eM1400 marks a departure from the traditional GEM models.

GEM has added a totally new member to their product lineup, the GEM eM1400. The all electric utility vehicle is a more heavy duty utility vehicle than the rest of the product line and, significantly, is not an LSV. It has an MSRP of $9,999. I spoke with GEM as well as GEM dealer about the vehicle to get some more information.

In part, the vehicle is a response to demand for an electric utility vehicle that does not have to be used on public roads and therefore does not need to be LSV compliant. This may be up to half of the GEMs sold today. The main differentiating features of the eM1400 are the 1,400 lb payload, 1,250 lb towing capacity, 8.5 inch ground clearance and the fully independent suspension. GEM claims the ride will be significantly better than other UTVs in its class. While not using the same parts as suspensions from the Polaris Ranger line of UTVs it does borrow the “same architecture and design philosophy”.

The main competitors for this vehicle currently in the market are the e-Gator and the electric Toro Workman UTV, the Carryall models from Club Car, electric UTVs from E-Z-GO and Cushman as well as gas powered alternatives. This entry into the market is definitely pushing GEM into more direct competition with these other brands.

While GEM has a strong presence on college campuses for transport and general maintenance, according to the dealer I spoke with, the demand for such a heavy payload in this market segment is limited. Combined with it not being LSV compliant, sales to this segment will probably be lower than other GEM models. On the other hand, I believe it might have more appeal to grounds crews on college campuses where a more rugged and heavy duty UTV is needed. GEM management sees the vehicle as having a much wider appeal than just the university market, basically anywhere a rugged, electric UTV is needed from landscaping to plants to golf courses. The dealer noted that use in industrial settings is most likely where the demand for the payload capacity will be. Users who mount special equipment like compressors or welders will be prospects.

Polaris will start building the GEM eM1400 in early November and they should be in the market by the end of November. The company is already taking orders from dealers. According to management, there may be some GEM dealers, like the legacy Chrysler dealers and those focused on the LSV market that may choose not to carry the new model. At the same time there is also the possibility that some Polaris dealers may have interest in carrying this GEM model. How that is handled by the company will depend on dealer interest.

The dealer I spoke with also remarked that if you add accessories including a cab, which is needed in some areas, the price could easily reach $13,000 which is pretty pricey. He also noted that GEM is known for their LSV compliance, 72 volt system, maintenance-free batteries, aluminum frame and unique styling and the eM1400 has none of those features. It might thus detract from the GEM image or falsely attract prospects who assume it has the normal GEM features. I would say he has point here, the eM1400 is clearly a departure from the traditional GEM product line. On the other hand, this vehicle could move the GEM brand more strongly into additional market segments. If done well the new vehicle could help reposition the brand more broadly as an electric small, task-oriented vehicle brand as opposed to the more limited positioning as an electric LSV brand. This would be relevant for markets outside the US as well.

Lastly, the dealer noted that some of the new GEM dealers come from a powersports background and are not as experienced in selling to commercial or institutional purchasers which usually require more direct outreach from the dealer as opposed to waiting for customers to walk through the door. I think this point is valid and it remains to be seen if newer GEM dealers can adapt their sales approach. The more successful dealers I know in this market are the ones that actively go out and demo vehicles for potential customers. This means having the time, people and equipment to make appointments, haul vehicles around the sales territory and demo the vehicles on site for potential customers.

The press release from GEM follows:

The long-awaited GEM® innovation is finally here! All electric-powered and purpose-built to last, the GEM eM1400 is the ultimate work vehicle. It delivers more power, more payload, and an exceptional ride backed by Polaris’ 60 years of performance and innovation.

Perfect for applications in industrial, commercial, government and education markets, the GEM eM1400 balances performance and versatility to tackle the work your customers need. Classified as a LEV (Low Emission Vehicle), this is the perfect vehicle for hauling cargo across your property or jobsite.

Key features of the GEM eM1400 include:

  • 1400 lb payload
  • 7 HP AC motor
  • 1,250 lb towing capacity
  • Range of up to 45 miles, top speed of 19 mph
  • Rugged, ergonomic design
  • Independent front and rear suspension
  • Lock & Ride®, Lock & Work™ configurability options

Learn more:  Polaris.com

Indian Start-Up Gets Funds For Low-Cost Rural UTV

Evomo Research & Advancement Pvt Ltd of India has received funds from a local business incubator for development of a low-cost rural utility vehicle. Started in 2010, Evomo, will use the unspecified amount of funds to get to a stage where it can take preorders for actual sales. The management, in part, sees the vehicle as a safety issue since it can replace many of the dangerous makeshift vehicles that are now used in many rural areas.

The Evomo UTV is an off-road vehicle for both passengers and goods in rural areas. Management claims the vehicle is legal, less polluting, handles rough terrain, can be transformed from people carrier to goods carrier and performs some of the agricultural functions like pumping water and carrying cargo. Powered by a diesel engine it has a top speed of 50-60 km/hour.

Learn more:  VCCircle.com

Kubota Introduces New X-Series UTVs

The new RTV-X900 from Kubota

Kubota used their dealer meeting to introduce the new X-series line of UTVs. The model lineup includes the RTV-X900, the RTV-X1120D, and the RTV-X1100C. “The new Kubota X-Series is the perfect combination of beauty and brawn,” said Dan Muramoto, Kubota RTV product manager. “We have raised the bar on styling, ergonomics, comfort and storage without giving up the durability, ruggedness and reliability that Kubota utility vehicles are known for. We’ve taken a huge leap with feature enhancements for this line, and the powertrain componentry, fit and finish, and quality of materials are arguably best-in-class.”

Key features of the vehicles include:

RTV-X900

  • 21.6 HP diesel engine
  • Hydraulic power steering
  • 2 in. hitch receivers at the front and back
  • Steel cargo dump box with 1,102 lb capacity

The new RTV-X1120D from Kubota, the deluxe model of their X series

RTV-X1120D (Deluxe model in the line)

  • 24.8 HP diesel engine
  • 29 mph top speed
  • Blue tinted halogen headlights
  • Polished alloy wheels
  • Hydrostatic steering with tilt steering

The new RTV-X1100C from Kubota with factory installed cab

RTV-X1100C

  • Factory installed cab with heating and AC
  • Roll down windows and nearly airtight cab
  • Pre-wired for antenna and two speakers

All models feature Kubota’s diesel engines and Variable Hydraulic Transmission. The Kubota RTV-X900 and X1100C replace the RTV900XT and the RTV1100, respectively, and the RTV X1120D is an incremental new model. Kubota will continue to offer the RTV400, RTV500 and RTV1140CPX in 2014.

Comment:  With this new line-up of vehicles it looks like Kubota is trying to improve the look and passenger comforts of the vehicle. Unlike the recreational end of the market where increasing the horsepower is important, the work oriented X900 and X1100C kept the same engine size as the vehicles they are replacing but added styling and comfort features.

Kawasaki Introduces Three New Teryx Models for 2014

New 2014 Teryx base model from Kawasaki

New 2014 Teryx LE from Kawasaki

New 2014 Teryx Camo from Kawasaki

Kawasaki recently introduced three new Teryx models for 2014. The new models feature more power, more room, a larger chassis, upgraded suspension and a new CVT clutch. Some of the key features for the two seater models include:

  • 783cc V-twin engine with 26% more horsepower over the previous version
  • CVT with changes to reduce belt wear and increase reliability
  • New Double X chassis to reduce flex and improve handling
  • 8 inches of travel in the front and 8.3 inches in the back
  • Electronic power steering
The base Teryx starts at $12,999.  The Teryx Camo and Teryx LE are two special models with some additional features. The Camo has upgraded LED headlights, a roof and premium Real Tree APG HD camouflaged bodywork. The LE gets the same LED lighting and roof, but adds some bling with Premium Candy Lime Green automotive quality paint on the bodywork, suspension arms and shock springs as well as matching three-tone bucket seat covers. In addition, the LE gets a tubular steel brush guard and lightweight aluminum wheels.  The Camo starts at $14,299 and the LE at $14,999.  Learn more:  Motorcycle-USA.com