Category Archives: Polaris

Polaris India Expects Strong Revenue Growth In India

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Executives at Polaris’ subsidiary in India, Polaris India, expect strong revenue growth over the next three to five years. By 2020 they are targeting a 100% to 200% sales increase at the subsidiary which sells ATVs, UTVs and motorcycles. The long term strategy is to build up enough volume to justify investment in local assembly plants. This would be the plan for motorcycles and off-road vehicles. Currently Polaris India imports all the Polaris vehicles they sell including the complete line of Indian motorcycles.

The management reports good sales of the Ranger EV in certain parts of the country and is exploring adding the GEM line of vehicles to their offering. Off-road vehicle sales are helped by the 39 Polaris Experience Zones, which are off-road vehicle tracks. They have also made sales to the Indian army and police. Polaris India distributes products through 16 dealerships in India and two more in Nepal and Kazakhstan. Export sales are made to Nepal, Bangladesh, Bhutan, Sri Lanka, Kazakhstan and Pakistan. Unrelated to Polaris Inida is the Polaris joint venture with Eicher. Learn more:  Timesofindia.com

Comment:  Of course, having sales targets and meeting them are two different things, but Polaris has consistently hit most of their long term strategic goals across many products. A lot will depend on how well the Indian economy grows but even slower growth in such a large market offers great potential.

Polaris Announces New Side-By-Side Models For 2016

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The new 2016 Polaris RZR XP Turbo EPS

The new 2016 Polaris RZR XP Turbo EPS

Polaris has announced their model year 2016 line-up including a new turbocharged RZR, the RZR XP Turbo EPS. The RZR XP Turbo EPS is powered by a turbocharged Prostar engine that produces 144 hp. Additional key features of the vehicle include:

  • Fox Podium Internal Bypass Shocks
  • Lighter-weight progressive rate upper spring and stiffer main spring
  • New front swaybar and re-tuned rear swaybar
  • Bolstered seats
  • Tilt steering
  • Factory installed quarter doors
  • MSRP $24,999
The new 2016 Polaris RZR S 1000 EPS

The new 2016 Polaris RZR S 1000 EPS

An additional new model is the 60 inch wide RZR S 1000 EPS featuring a 100 hp Prostar engine, Dual A-Arm rear suspension, Fox 2.0 Podium X shocks, True All-Wheel Drive, bolstered seats and factory installed quarter doors. The MSRP is $17,999. The 2016 RZR line also includes some comfort and ergonomic improvements including:

  • New seat angle that brings the driver’s elbows closer to the body providing less arm fatigue and a more natural driving position for the RZR 1000 EPS, RZR 900 EPS, RZR S 900 EPS, RZR XC 900 EPS, RZR 4 900 EPS, RZR XP 1000 EPS, RZR XP Turbo EPS, RZR XP 4 1000 EPS and non-EPS vehicles.
  • Adjustable seatbelt sliders for the RZR XP 1000
The value priced 2016 Polaris Ranger 570 Full-Size

The value priced 2016 Polaris Ranger 570 Full-Size

The new 2016 Polaris Ranger XP 900 EPS High Lifter Stealth Black for mud riding.

The new 2016 Polaris Ranger XP 900 EPS High Lifter Stealth Black for mud riding.

In the Ranger lineup Polaris is adding the Ranger 570 Full-Size with a 60 inch three seat chassis, tubular ROPS, 44 hp Prostar 570 engine, 1,500 lb. towing capacity, 800 lb. cargo bed capacity and value targeted MSRP of $9,999. They are also adding a three-seat mud riding model, the Ranger XP 900 EPS High Lifter Edition Stealth Black. This model features reduced gearing for more mud-specific torque with an added a heavy-duty reverse chain, high engine air and clutch intakes and outlet, arched lower A-Arms, 28 in/71.12 cm High Lifter Outlaw II tires and an improved drainage skid plate. The vehicle also features a Pro-Lock™ On-Demand All-Wheel Drive for quicker four-wheel drive engagement in the mud, electronic power stering, 4,500 lb. winch with integrated in-dash switches, specially designed front bumper to allow winch access, rear bumper, half doors and special graphics kit.

Another Ranger addition for 2016 is the pure electric Ranger EV Li-Ion Polaris Pursuit Camo. This model includes:

  • 48-volt Ac-induction motor
  • Battery management controller to more accurately represent battery life
  • Vehicle Control Module with new digital gauge and better accessory integration
  • On-vehicle diagnostics
  • MSRP $22,999

A Ranger 570 EPS Hunter Edition Polaris Pursuit Camo is new for model year 2016. This model includes Active Descent Control for more control in mountainous terrain, Pro-Lock On-Demand All-Wheel Drive, 3,500 lb. winch, and dual Lock & Ride Scabbards.

Other Ranger models will get a power boost in 2016 with the addition of high output Prostar engines for the Ranger Crew 900-5 and Ranger Crew 900-6 (68 hp) as well as the Ranger XP 570 and Ranger Crew 570-6 (46 hp). Other Enhancements to the Ranger line include an updated hood design with an aggressive new look for the Ranger XP 900 and Ranger XP 570 and Crew vehicles. For maximum power delivery to the ground, the Ranger XP 900 EPS and Crew 900 painted models are now equipped with Pro-Lock On-Demand All-Wheel Drive.

The 2016 Polaris Ace 900 SP adds power and high performance features.

The 2016 Polaris Ace 900 SP adds power and high performance features.

There is also a new Polaris ACE model for 2016, the ACE 900 SP, which features a 60 hp Prostar 900 engine with electronic fuel injection and electronic throttle control. Notable features include:

  • Front stabilizer bar
  • New dual rate springs in the independent rear suspension
  • 25 inch tires
  • Polaris’ High Performance Close Ratio On-Demand All-Wheel Drive (AWD)
  • MSRP $11,499

Learn more:  UTVguide.net

Comment:  Polaris continues to add to their armada of vehicles. The turbocharged model is a response to Can Ams turbocharged offering. Their other new models demonstrate how they pursue market niches with very specific models such as those for hunting or mud riding. They also make a number of tweaks to the rest of their lineup, many of which focus on comfort or ergonomics. Combined, the niche marketing and tweaking, I believe demonstrate the level of customer research that they put into their product development. Many of these changes are quite specific which I don’t believe they would be making without customer research to justify them.

The new value priced Ranger is most likely a response to the increased competition in this segment of the market where promotions from established brands and offerings from companies like Kymco and CFMoto may be impacting sales. The new electric Ranger injects some of the Brammo acquired expertise in lithium ion technology into their side-by-side product line. It will be interesting to see how the vehicle sells with an MSRP that’s over $10,000 more than their lead-acid battery based EV Rangers. The pricing makes it a niche vehicle and its wise that it is essentially a high-end, electric hunting vehicle where the extra battery range can make a difference and possibly open up new markets, where electric hunting vehicles previously may have struggled to gain traction because of range issues. The new ACE model indicates a demand for and expansion into higher performance riding for the one-seater market.

Polaris Recalls Youth Side-By-Side Due To Fire Hazard

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The Polaris Youth RZR 170 EFI in blue that is part of the recall.

The Polaris Youth RZR 170 EFI in blue that is part of the recall.

The Polaris Youth RZR 170 EFI in red that is part of the recall.

The Polaris Youth RZR 170 EFI in red that is part of the recall.

Polaris has issued a recall of approximately 4,300 2015 model year Youth RZR 170 EFI side-by-sides because an issue with the fuel pump poses a fire hazard. Consumers should stop using the vehicles and contact their local dealer for a free repair. Polaris can be contacted toll-free at (888) 704-5290, from 8 a.m. to 5 p.m. CT Monday through Friday or online at www.polaris.com and click on Product Safety Recalls for more information.

The following recall information is from the Consumer Products Safety Commission.

Recall Details

Units:  About 4,300

Description:  This recall involves Model Year 2015 Polaris Youth RZR® 170 EFI recreational off-highway vehicles with model number R15YAV17AA/AF and VINs between RF3YAV170FT000076 and RF3YAV17XFT005141. To see the complete list, visit the firm’s website. The VIN is on the left-hand front frame tube. They were sold in both blue and red. The blue models have a “170 EFI” decal on the right and left side of the hood and an “RZR” decal on the right and left front fenders. The red models have a “170 EFI” decal on the right and left front fenders and a “RZR” decal on the right and left rear fenders.

Incidents/Injuries:  None reported

Remedy:  Consumers should immediately stop using the recalled Polaris RZR vehicles and contact their local Polaris dealer to schedule a free repair. Polaris is contacting its customers directly and sending a recall letter to each registered owner of an affected product.

Sold at:  Polaris dealers nationwide from October 2014 through June 2015 for about $4,600.

Distributor(s):  Polaris Industries Inc., of Medina, Minn.

Manufactured in:  Taiwan

Learn more:  CPSC.gov

Polaris Reports Strong Quarterly Earnings For Q2 2015

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Beauty shot of the new Sportsman ACE from Polaris.

The Sportsman ACE from helped drive Polaris ORV sales in the 2nd quarter.

Last week Polaris reported record 2nd quarter sales of $1.124 billion. While the company missed Wall Street expectations, they continued to experience growth across product categories including ORVs and small vehicles. The main problems for the quarter stemmed from very high demand for their motorcycles and issues with a new paint system exacerbated by the greater than expected demand. The following is a summary of  key points related to ORVs and small vehicles.

  • The new Huntsville plant is on budget and on time for a Q2 2016 start
  • ORV revenue (UTVs and ATVs) increased 2% in the quarter driven by strong RZR sales globally but offset by reduced shipments to dealers to lower inventory levels
  • Year to date ORV revenue is up 6%
  • Management reports gaining North American market share in side-by-sides and ATVs
  • Side-by-side retail sales increased high single digits which slightly outpaced the industry
  • Full-size Rangers and the ACE showed strength while there was some weakness in value and entry offerings
  • Sales promotion pressures were strong in the 2nd quarter
  • Management reports continued strong competition in the ORV market with ongoing product innovations from competing brands.
  • Global Adjacent markets decreased 3% in the 2nd quarter but are up 2% year-to-date and up high single digits in constant currency measurement
  • North American work and transportation revenue grew high teens percent driven by expansion and success in direct national account business and the Ariens partnership but there was weakness in the BRUTUS Channel caused by distribution, transition and erosion.
  • GEM revenue increased driven by double-digit retail growth
  • European work and transportation decreased high teens percent due primarily to currency weakness and some softness in the European quadricycle industry, which  is flat year-to-date.
  • Second quarter defense sales increased low single digits primarily due to timing of orders but the outlook remains strong with increasing DAGOR and RZR and international demand.
  • In international sales Latin America and Asia Pacific sales were strong while EMEA revenue suffered from currency issues and a weak Russian market.
  • Polaris launched their multi-purpose vehicle the Multix in India. The partnership with Eicher will start with 30 dealers and build to 200 by 2020.
  • Revenue guidance for the year is narrowed but essentially unchanged.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  While the the UTV market may not be growing as fast as previous years, it is still showing signs of strong growth and is outpacing the economy in general. This is despite weaknesses in oil and agriculture driven markets. Competition continues to remain at a high level as exhibited by elevated promotion levels, numerous product introductions and continued product innovation.

Polaris Ranger To Be Used In DARPA Robotics Challenge

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Polaris is providing a modified Ranger XP 900 EPS for the DARPA Robotics Challenge

Polaris is providing a modified Ranger XP 900 EPS for the DARPA Robotics Challenge

A Limited Edition DARPA Polaris Ranger XP 900 EPS will be used in part of the DARPA Robotics Challenge held June 5-6, at the Fairplex, in Pomona, CA.

This DARPA Robotics Challenge was created to spur development of robotic technology that can help humans to better respond to future disasters. The Challenge Finals will have robots perform a number of tasks in a continuous course, simulating what might be encountered in a real disaster situation. DARPA will use the RANGER XP 900 EPS in one of the most difficult tasks to help demonstrate a robot’s ability to operate and to egress from a vehicle, since they are among the tools commonly on hand in disaster zones.

The Ranger XP 900 EPS was modified for use in the event including:

  • A remote SafeStop electronic throttle kill
  • Brake actuation technology
  • A 1,000 lb. capacity bed for the robot’s power supply
  • Bench seat and tilt steering to create more room for a robotic driver
  • Terrainarmor airless tires

For Polaris the event is an opportunity to further develop a vehicle platform with which robotic companies can integrate their own products. Polaris is also providing GEM vehicles for robot, people and supply transport at the event. Learn more:  Polaris.com

Comment:  The Challenge is a good opportunity for Polaris to work on product development for autonomous vehicles for both disaster relief and military applications as well as creating a vehicle platform for robotics companies. Building vehicles for speciality applications with specific features and options is also an effective way to produce higher margins in an increasingly competitive UTV market.

Polaris Chooses Design & Construction Firms For Huntsville Plant

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Polaris-5.13-Cropped

Rendering of the new Polaris facility in Huntsville, AL

Polaris Industries has chosen two Nashville, TN firms for the design and construction of their new manufacturing plant in Huntsville, AL. T.W. Frierson Contractor, Inc. and the architectural firm Design Constructors, Inc. were chosen for the $48 million, 775,000-square-foot plant that is scheduled to be operational within a year. The production facility is the first for Polaris in the southern half of the United States, and will initially be producing the Ranger side-by-side utility vehicles including vehicle assembly, chassis and body painting, welding, fabrication and injection molding. Learn more:  Madisoncountyrecord.com

Polaris Reports Record First Quarter 2015 Results

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Polaris yet again reported record quarterly results with first quarter 2015 sales reaching $1,033.3 million, up 16% compared to the previous year. Operating income increased 19% to $150.3 million during the 2015 first quarter. Currencies in the 2015 first quarter had a $32 million negative impact on total company sales versus Q1 of last year. Here are some of the highlights related to the STOV market. Comparisons are between first quarter 2015 to first quarter 2014, unless otherwise stated. The highlights have been updated following the earnings conference call with analysts.

  • Off-Road Vehicle (ORV) sales, which includes UTVs and ATVs increased 11% to $645.4 million.
  • ORV inventory increased primarily in the ATV segment.
  • Polaris North American ORV unit retail sales were up mid-single digits percent, with consumer purchases of Rangers and RZRs each increasing from the first quarter last year.
  • RZR sales are stronger than Ranger sales but the latter grew “nicely”.
  • North American ATV retail sales decreased low-single digits percent due to heavy competitive promotional spending during the 2015 first quarter with ACE up significantly.
  • Management reports a “fair amount” of wholesale discounting by competitors but this is not expected to continue. Promotional activity is more pronounced for ATVs but is occurring for side-by-sides as well.
  • Management sees the Hammerhead brand acquisition as a good way to attack the value end of the UTV market.
  • North American industry ORV retail sales in the first quarter 2015 increased an estimated mid-single digits percent according to management.
  • Sales of Polaris ORVs outside of North America decreased 10%  primarily due to weak economic conditions in the Europe, Middle East and Africa (EMEA) region, as well as the currency impact of a strengthening U.S. dollar.
  • ORV industry in EMEA region grew mid-single digits in terms of volume but was driven by smaller value products and discounting.
  • Average sales per ORV unit increased 7% in the quarter.
  • The Eicher-Polaris JV will begin shipping the new utility vehicle in Q3.
  • Global Adjacent Markets, which includes GEM, Aixam, Goupil as well as government and military sales, increased 7% to $65.4 million.
  • Government/military group experienced double digit percent sales growth during the 2015 first quarter.
  • Work and Transportation (W&T) group sales (part of Global Adjacent Markets) increased mid-single digits percent with North American W&T sales increasing double digits percent while W&T outside North America declined partly resulting from lower Aixam sales in EMEA due to the impact of negative currencies.
  • North American W&T was up over 30% on strong partnership shipments, national account growth and 40% GEM retail increase.
  • Brutus retail increased low double digits in volume but revenue was hurt by promotions and the loss of some dealers. The PTO and high end models are performing well but base models are underperforming.
  • Goupil and Aixam increased shipments and future orders are up 20% but currency headwinds remain a drag.
  • Aixam made market share gains in a flat industry performance.
  • Defense revenue grew double digits on strength of M RZR in international markets and DAGOR shipments to special forces.

Guidance for the Year

  • Global adjacent market sales are now expected to grow 5% to 10% and total international sales are now expected to decline low single digits percent.
  • ORV’s are expected to increase mid-single digits percent after growing 11% in the first quarter benefiting from a 7% increase in the average sales per ORV unit.
  • Currency changes are expected reduce full year 2015 revenue by $140-160 million.

Learn more:  Seekingalpha.com (Earnings call transcript)

Eicher-Polaris Joint Venture To Launch Flexituff Utility Vehicle For The Indian Market

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Eicher-Polaris-Flexituff-side-spied-900x549

The new Flexituff utility vehicle from an Eicher and Polaris collaboration was spied on the road recently while undergoing tests. Photo Credit:  www.indianautoblog.com

A collaboration between Eicher and Polaris is set to release their first vehicle, something akin to a mini-truck, later this year for the Indian market. The Flexituff UV will be available in two configurations, a multi-passenger van (MPV) and a twin-cab pickup for hauling cargo. The vehicle will feature a Greaves Cotton 600cc diesel engine with claimed mileage of 25km/L. Based on pictures of the vehicle in testing, the vehicle will be slightly larger than competitive offerings, the Mahindra Maxximo and Tata Magic. Initial production is expected to be 10-12,000 vehicles per year with expectations that it will reach 100,000 units in the future. Learn more:  Motoroids.com

Update:  Some more information on the vehicle. It uses composite body panels to save weight and “…features a bare dashboard with a four-spoke steering wheel, a simple instrument cluster and a centre console-mounted gear level.” The double cab pickup with cargo area can fit five occupants. The price of the vehicle is expected to be about 1 lakh or about $1,500-1,600 US. The vehicle development project is reported to have cost $40 million US. Learn more:  Inidancarsbikes.in

Comment:  This type of vehicle is not as prevalent in the US but in India and parts of Asia the vehicles are common. Smaller sized delivery vehicles are an important part of a hub and spoke delivery system where they are used to deliver goods the last kilometer or so through small and crowded streets. Price points and cost of operation are important purchasing factors for owner/operators of these local shipping businesses.

Polaris Ranger Sponsors PRCA ProRodeo

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Polaris announced that the  Polaris Ranger will be the “Official UTV of the PRCA, the RAM National Circuit Finals Rodeo and Wrangler National Finals Rodeo.” The national sponsorship deal also includes the renaming of the The Wrangler National Finals Rodeo to the “Wrangler National Finals Rodeo presented by Polaris RANGER”, and PRCA World Champions and all RNCFR champions will each receive a Polaris RANGER, as well as both of the Remuda Award winners.  Learn more:  Theprairiestar.com

Polaris Acquires Hammerhead Off-Road

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The Hammerhead GTS Platinum off-road go-kart.

The Hammerhead GTS Platinum off-road go-kart.

Polaris Industries announced the acquisition of HH Investment Limited, a Shanghai-based company that manufactures off-road go-karts, light-utility and electric utility vehicles, which are sold under the Hammerhead Off-Road brand name in the US. In addition to its main manufacturing facility in Shanghai, Hammerhead has a sales, distribution and light-assembly operation in Dallas. The company also has some private label agreements with other OEMs. Hammerhead Off-road will continue to operate as a standalone entity. Learn more:  Polaris.com

Comment:  The acquisition fits many of the strategic objectives that Polaris has including growing their international revenues and expanding into electric vehicles. The addition of go-karts further extends the breadth of Polaris’ offerings of off-road vehicles from work to recreational applications as well as in terms of customers and price points. Their product line retails for between $1,000 and $3,500 and some of them are go-karts for kids. The assembly operation in Texas may also prove useful for serving the growth of UTVs in the southern tier of the US. Even though the company will operate as a standalone entity, it will be interesting to see if some Polaris dealers start picking up the product line. Hammerhead could benefit from the extensive Polaris dealer network.