Recent UTV Recalls

Posted on May 24, 2021 by Marc Cesare

2020 Polaris Ranger Crew 1000 utility vehicle part of recall. — The Polaris 2020 Ranger Crew 1000 is part of a large recall related to a drive belt issue.

UTV Recalls Summary

There have been a number of UTV recalls the last two months. With the exception of the latest Polaris recall involving over 40,000 vehicles, the recalls have been very small. The large Polaris recall includes Ranger 1000 and Ranger Crew 1000, ProXD, Ariens/Gravely and Bobcat models. These models use a common drive belt, which can break and damage the fuel line.

The smaller recalls include John Deere XUV590, Kawasaki Teryx and Polaris RZR Pro XP models. A variety of issues drive the recalls. The recall information below is from the Consumer Product Safety Commission.

UTV Recalls Detailed Information

John Deere Gator UTV Recall

OEM	Model(s)	Hazard	Remedy	Recall Date, Number & Link	Units Involved
John Deere	XUV590 and XUV590 S4 Gator™	An error in the ECU (Engine Control Unit) software can result in the speedometer and several speed-related safety systems not functioning as designed, posing a crash hazard and risk of injury.	Repair	5/20/2021 21-748 Recall lists recalled serial numbers	~90
Polaris	2021 RZR Pro XP & Pro XP 4	The vehicles were manufactured without copper seal washers on the turbocharger’s oil supply line, which can result in an oil leak, posing a fire hazard.	Repair	5/13/2021 21-744	~32
Kawasaki	Teryx S LE, Teryx4, Teryx4 Le, S LE, S LE Camo Gray, S LE Camo	The fuel pump retainer plate bolts can come loose causing fuel leakage over time, posing a fire hazard.	Repair	4/22/2021 21-739	~100
Polaris	2020-2021 Ranger 1000 and Ranger Crew 1000, 2020 ProXD 2000G and 4000G, 2020-2021 Ariens/Gravely JSV3200, JSV3400, and JSV6400, 2020 Bobcat UV34 4×4 Gas and UV34 XL Gas, and 2021 Bobcat UV34 4×4 Gas	The drive belt can break during operation and damage the inner clutch cover assembly and fuel line, which can result in a fuel leak, posing a fire hazard.	Repair	3/25/2021 21-732	~41,500

SVR tracks recalls on an ongoing basis.

Polaris Recalls Ranger and ProXD UTVs

Posted on March 10, 2021 by Marc Cesare

The 2020 Polaris Pro XD 4000G utility vehicle being recalled is sold to commercial markets.

The 2020 and 2021 Polaris Ranger XP 1000 is also part of the recall.

Ranger and ProXD UTVs Recall Summary

Polaris is recalling model year 2020-2021 Ranger 1000, Crew 1000, XP 1000 and Crew XP 1000 utility vehicles as well as model year 2020 ProXD 2000G, 2000G H, 4000G and 4000G H utility vehicles. The throttle pedal can return to the idle position more slowly than anticipated and create a crash hazard. The recall includes nearly 16,000 vehicles. Owners should stop using the vehicles and contact their local Polaris dealer to schedule a repair. Owners filed 52 reports regarding the issue, including six crashes, but no reported injuries. The following recall details are from the Consumer Product Safety Commission.

Ranger and ProXD UTVs Recall Details

Name of product: Model Year 2020-2021 RANGER 1000, RANGER CREW 1000, RANGER XP 1000, and RANGER CREW XP 1000 and Model Year 2020 ProXD 2000G, ProXD 2000G H, ProXD 4000G, and ProXD 4000G H

Hazard: The throttle pedal can return to the idle position more slowly than anticipated once the pedal is released or stick in the depressed position, posing a crash hazard.

Recall date: March 4, 2021

Units: About 15,800 (In addition, 711 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand click on “Off Road Safety Recalls” or https://www.polaris.com/en-us/off-road-recalls/ to check your vehicle identification number “VIN” or go to “Product Safety Recalls” page to see if your vehicle is included in any recalls or online at https://www.polaris.com/en-us/recalls/off-road/.

Description: This recall involves Model Year 2020-2021 RANGER 1000, RANGER CREW 1000, RANGER XP 1000, and RANGER CREW XP 1000 recreational off-highway vehicles and Model Year 2020 ProXD 2000G, ProXD 2000G H, ProXD 4000G, and ProXD 4000G H off-road utility vehicles. The vehicles were sold in the following colors: black, blue, burgundy, camo, gray, green, orange, red, sand, tan, titanium, and white. The RANGER vehicles have three or six seats and the ProXD vehicles have two or four seats. The RANGER and ProXD vehicles have “POLARIS” stamped on the front grille. The model number and VIN are printed on a portion of the left rear frame (on the driver’s side of the vehicle) under the cargo box.

Remedy: Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free repair. Polaris is notifying all dealers and contacting registered owners directly.

Incidents/Injuries: The firm has received 52 reports of throttle pedals returning to the idle position slowly or sticking, including six reports of vehicle crashes resulting in minor property damage. No injuries have been reported.

Sold At: Polaris dealers nationwide from April 2020 through January 2021 for between $13,000 and $31,000.

Manufacturer(s): Polaris Inc., of Medina, Minn.

Manufactured In: United States and Mexico

Recall number: 21-724

SVR’s Take

At 16,000 units the recall is medium sized for Polaris. They are the largest UTV manufacturer by far so you would expect them to have more and larger recalls. However, this is the seventh recall dating back to January of 2020. The recall also has relatively high number of consumer reports. It appears they are still having quality control issues despite making changes after their massive recalls several years ago. SVR tracks recalls on an ongoing basis.

2021: A Turning Point for Electrifying UTV?

Posted on March 3, 2021 by Marc Cesare

Polaris Ranger electric UTV developed in partnership with Zero Motorcycles — An electric Ranger is the first product from the Polaris partnership with Zero Motorcycles.

Polaris’ New Push to Electrify UTVs

Polaris’ announcement that they will be producing a new electric Ranger in collaboration with Zero Motorcycles is a strong indication that 2021 may be a turning point for the electrifying UTVs. They are the leading UTV manufacturer and already produces an electric Ranger but with traditional lead acid battery technology. There was a lithium ion battery equipped option at one time, but the model was prohibitively priced. The Ranger EV with a lithium battery pack cost approximately $10,000 higher than the lead acid version. This new Ranger EV is another step by Polaris as they increase investment towards electrifying UTVs and other powersports products.

At the end of 2019 the company created a new position, senior vice president of Electrification Strategy. Signaling the initiative’s importance, they filled it with the then president of Off Road, the company’s largest business division. In September, 2020 they announced a 10-year partnership with Zero Motorcycles as a cornerstone to their electrification strategy. Named rEV’d up, the strategy aims to offer electric vehicle options within each of its core product segments by 2025. Zero Motorcycles is one of the leading electric powertrain technology companies.

Polaris Has Extensive EV Experience

Polaris actually has quite a bit of experience in electric vehicles, but mostly outside of their powersports segments. Through the years the company has acquired GEM, Goupil, Brammo Electric Motorcycles and Taylor-Dunn, all manufacturers of electric vehicles. However, these companies are primarily active in markets that are more tangential to powersports. Polaris used the Brammo technology in the Ranger EV but not a motorcycle. Goupil produces light-duty commercial vehicles for the European market, GEM produces light-duty utility vehicles and transporters for college/corporate campuses and such, and Taylor-Dunn produces industrial utility vehicles. While these acquisitions were for commercial markets not powersports, Polaris gained a wealth of experience with electric vehicles.

Volcon is a startup looking to electrify powersports.

Moving forward, these product lines can provide manufacturing volume and a broad product development base to further spread the cost of developing new electric powertrain technology. This could become a distinct advantage for Polaris that most of their competitors do not have. Can-Am, their leading powersports rival, is also moving into electrification, but is not active in other electric vehicle segments. Others, like Textron and Yamaha are major players in the golf car market. More interesting and potentially tougher competitors may be new entrants into the market like Texas-based Volcon Motors. This electric vehicle start-up has plans to introduce an all-terrain electric motorcycle in the Spring of 2021, a two-seat electric UTV later in 2021 and a four-seat UTV in 2022. Start-ups lack the financial resources, manufacturing expertise and distribution networks of established players but aren’t burdened by cultural legacies and management incentives tied to ICE based vehicles.

Electrifying UTVs is Challenging

Electrifying UTVs poses a unique challenge because of their size, performance requirements and usage profile. They need both power and range but still must remain reasonably priced. They need the power because, well, its powersports after all and a vehicle’s horsepower is a defining characteristic. Work oriented UTVs, especially for heavy duty work applications, need plenty of horsepower as well. Users want to make long trail rides without being stranded in the middle of nowhere, or be productive work throughout the work day.

There is limited space for a battery pack in these very compact vehicles. In addition, a large sized battery pack will make the vehicles prohibitively expensive. It’s not surprising that they are starting with the lower priced Ranger. A small but efficient motor and small battery pack could keep prices low enough while still delivering better performance than the existing ICE engine in the Ranger. The new Ranger EV could also fit in nicely on college and corporate campuses or smaller farms/ranches where the range and work requirements would be not as demanding.

High-end, off-road performance vehicles might be the next step. Already a premium market, they may be able to more readily absorb the additional expense of a large battery pack. These higher-end models could also serve to demonstrate the unique performance characteristics of an electric powertrain as well as gauge the interest of a customer base that likes the sound of ICE engines. An interesting aspect is that the performance customer is likely to wear out the rest of the vehicle before the advanced battery pack. Selling or leasing the battery pack separately from the rest of the vehicle may become an option. Approaching the UTV market from both ends may be the most likely strategy. Moving up the lower priced work-oriented UTVs and moving down from the highest priced, off-road performance UTVs, as electric powertrain technology improves and becomes more affordable.

Marc Cesare, Smallvehicleresource.com

Yamaha Recall: Wolverine RMAX1000 UTVs

Posted on March 1, 2021 by Marc Cesare

Yamaha Wolverine RMAX1000 UTV — Yamaha is recalling certain Wolverine RMAX1000 UTVs due to a shock absorber issue.

Yamaha Recall Summary

In February Yamaha issued a recall of model year 2021 Wolverine RMAX4 1000 utility vehicles. The relatively small recall involves approximately 820 vehicles sold from October through December of 2020. The rear shock absorber mounts can break and potentially cause a crash. Owners should stop using the vehicle and contact a local Yamaha dealer for a free repair. The following recall information is from the Consumer Product Safety Commission.

Yamaha Recall Details

Name of product: Model Year 2021 Wolverine RMAX4 1000 Recreational Off-Highway Vehicles (ROVs)

Hazard: The vehicles’ rear shock absorber mounts can break, posing crash and injury hazards.

Remedy: Repair

Recall date: February 11, 2021

Units: About 820

Consumer Contact: Yamaha at 800-962-7926 anytime or online at https://yamaha-motor.com/and click on “CPSC Recall Alerts” for more information. In addition, check your vehicle identification number “VIN” on Yamaha’s “Product Safety Recalls” page to see if your vehicle is included in any recalls.

Description: This recall involves model year 2021 Wolverine 1000 RMAX4 recreational off-highway vehicles. The side-by-side vehicles were sold in blue, green and gray. The model name is shown on the side of the vehicle. The Vehicle Identification Number can be found on the frame at the left rear. The model number is located near the front left corner of driver’s seat.

Model Year	Model Name	Model Number
2021	Wolverine RMAX4 1000 XT-R	YXF10WPZM
	Wolverine RMAX4 1000 LE	YXF10WPLM
	Wolverine RMAX4 1000	YXF10WPAM

Remedy: Consumers should immediately stop using the recalled ROVs and contact an authorized Yamaha dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

Incidents/Injuries: Yamaha has received one report of the rear shock absorber breaking loose. No injuries have been reported.

Sold At: Yamaha dealers nationwide from October 2020 through December 2020 for between $21,300 and $25,300.

Importer(s): Yamaha Motor Corporation U.S.A., of Cypress, Calif.

Manufactured In: Japan

Recall number: 21-720

SVR’s Take:

On one hand, this recall is small compared to what we typically see and to the overall sales volume for Yamaha. On the other hand, it is a new vehicle and has not been on the market too long. Not what Yamaha’s management would like to see as they rolled out their new Wolverine lineup. This is the first recall SVR remembers involving shock absorbers in at least the last five years. Textron Off Road had a recall involving suspension arms in 2019. SVR tracks recalls on an ongoing basis.

Marc Cesare, Smallvehicleresource.com

Honda Pioneer Recall Is Massive

Posted on December 14, 2020 by Marc Cesare

Honda Pioneer 700-4 utility vehicle part of recall. — The Honda Pioneer 700-4 is part of a large recall due to a steering control issue.

Honda Pioneer Recall Summary

Honda recently announced a massive recall of over 118,000 Pioneer UTVs due to the potential loss of steering control. The Honda Pioneer recall involves model year 2017 to 2019 and some 2020 Pioneer 700 models and 2016 to 2019 and some 2020 Pioneer 1000 models. Both crew and single row seating versions are included. Owners should immediately stop using the vehicles and contact their local Honda Powersports dealer for a free inspection and repair. The following recall details are from the Consumer Product Safety Commission (CPSC).

Honda Pioneer Recall Details

Name of product: Honda Pioneer 700 & 1000 Recreational Off-Highway Vehicles (ROVs) with Electric Power Steering (EPS)

Hazard: The ROV can lose steering control, posing crash and injury hazards.

Remedy: Repair

Recall date: December 3, 2020

Units: About 118,600

Consumer Contact: American Honda toll-free at 866-784-1870 from 8:30 a.m. to 4:30 p.m. PT Monday through Friday or online at http://powersports.honda.com/ and click on “Recall Information” at the bottom of the page for more information.

Recall Details

Description: This recall involves Model Year 2017-2019 & certain 2020 Honda Pioneer 700 and 2016-2019 & certain 2020 Pioneer 1000 Side-by-Side vehicles equipped with Electric Power Steering (EPS). The recalled vehicles were sold in various colors including: Red, blue, green, gray and yellow. The name “HONDA” is on the front, sides and the rear of the vehicle. The model name Pioneer 700 or Pioneer 1000 is printed on a label located on both sides of the vehicle. The serial number (VIN #) is stamped in the frame at the left rear, below the tilt-up bed/seat.

MY	Model	VIN Start	VIN End
2017	Pioneer 700 – 2 Passenger (SXS700M2*)	1HFVE02**H4300001	1HFVE02**H4303722
2017	Pioneer 700 – 4 Passenger (SXS700M4*)	1HFVE02**H4300001	1HFVE02**H4350720
2018	Pioneer 700 – 2 Passenger (SXS700M2*)	1HFVE02**J4400001	1HFVE02**J4402760
2018	Pioneer 700 – 4 Passenger (SXS700M4*)	1HFVE02**J4400001	1HFVE02**J4451320
2019	Pioneer 700 – 2 Passenger (SXS700M2*)	1HFVE02**K4500001	1HFVE02**K4502100
2019	Pioneer 700 – 4 Passenger (SXS700M4*)	1HFVE02**K4500001	1HFVE02**K4550600
2020	Pioneer 700 – 2 Passenger (SXS700M2*)	1HFVE02**L4600001	1HFVE02**L4601500
2020	Pioneer 700 – 4 Passenger (SXS700M4*)	1HFVE02**L4600001	1HFVE02**L4650780
2016	Pioneer 1000 – 3 Passenger (SXS1000M3*)	1HFVE04**G4000001	1HFVE04**G4008403
2016	Pioneer 1000 – 5 Passenger (SXS1000M5*)	1HFVE04**G4000001	1HFVE04**G4010507
2017	Pioneer 1000 – 3 Passenger (SXS1000M3*)	1HFVE04**H4100001	1HFVE04**H4102101
2017	Pioneer 1000 – 5 Passenger (SXS1000M5*)	1HFVE04**H4100001	1HFVE04**H4103000
2018	Pioneer 1000 – 3 Passenger (SXS1000M3*)	1HFVE04**J4200001	1HFVE04**J4205460
2018	Pioneer 1000 – 5 Passenger (SXS1000M5*)	1HFVE04**J4200001	1HFVE04**J4210320
2019	Pioneer 1000 – 3 Passenger (SXS1000M3*)	1HFVE04**K4300001	1HFVE04**K4301920
2019	Pioneer 1000 – 5 Passenger (SXS1000M5*)	1HFVE04**K4300001	1HFVE04**K4302460
2020	Pioneer 1000 – 3 Passenger (SXS1000M3*)	1HFVE04**L4400001	1HFVE04**L4403180
2020	Pioneer 1000 – 5 Passenger (SXS1000M5*)	1HFVE04**L4400001	1HFVE04**L4404620

Remedy: Consumers should immediately stop using the recalled ROVs and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair, if necessary. Honda is contacting all known purchasers directly.

Incidents/Injuries: The firm has received 8 reports of the ROV’s having either play in the steering or losing control of steering. No injuries or accidents have been reported.

Sold At: Authorized Honda Powersports dealers nationwide from August 2015 through March 2020 for approximately between $10,000 and $21,000.

Manufacturer(s): American Honda Motor Co., Inc., of Torrance, Calif.

Manufactured In: United States

Recall number: 21-711

Report an Incident Involving this Product

SVR’s Take

This is a really large recall, likely encompassing most of Honda’s Pioneer UTV sales over the last five years. This is more evidence that the industry appears to have a quality control problem. The 2016 to 2019 Honda Pioneer 1000 UTVs have previously been recalled for a throttle pedal issue. In addition, another recall for a throttle body issue overlaps 2016 to 2018 models. SVR estimates that over the last several years no less than 14% and often more than 25% of the total UTV market are recalled annually. These figures count models with more than one recall only once. SVR tracks industry recalls on an ongoing basis.

Polaris Recalls RZR UTVs

Posted on November 30, 2020 by Marc Cesare

2021 RZR PRO XP 4 utility vehicle is part of a Polaris recall — The 2021 RZR PRO XP 4 is part of the latest Polaris recall.

Polaris Recall Summary

Polaris recently announced the recall of almost 19,000 RZR utility vehicles sold in the US and Canada. The vehicle’s clutch can fail and create an injury hazard. The Polaris recall involves model year 2020-2021 RZR PRO XP, PRO XP 4 and model year 2021 RZR Turbo S, Turbo S4, XP Turbo and XP 4 Turbo vehicles. Owners should stop using the vehicles and contact their local Polaris dealer for a free inspection and repair.

Polaris Recall Details

The following details are from the Consumer Product Safety Commission.

Name of product: Model Years 2020-2021 RZR PRO XP, PRO XP4 and Model Year 2021 RZR Turbo S, Turbo S4, XP Turbo and XP 4 Turbo ROV

Hazard: The vehicle’s clutch can fail, posing an injury hazard.

Remedy: Repair

Recall date: November 19, 2020

Units: About 18,400 (In addition, about 560 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.com and click on “Off Road Safety Recalls” for more information. In addition, check your vehicle identification number “VIN” on the “Product Safety Recalls” page to see if your vehicle is included in any recalls.

Description: This recall involves Model Year 2020 RZR PRO XP and RZR PRO XP 4 and Model Year 2021 RZR PRO XP, RZR PRO XP 4, RZR Turbo S, RZR Turbo S 4, RZR XP Turbo and RZR XP 4 Turbo recreational off-highway vehicles. The two or four-seat vehicles were sold in the following colors: Black, blue, gray, lime (green), sand (light brown), orange, red, titanium (silver) and white. POLARIS is stamped on the front grille and POLARIS and RZR are printed on the sides of the vehicles.

Model Year	Model Name
2020	RZR PRO XP
2020	RZR PRO XP 4
2021	RZR PRO XP
2021	RZR PRO XP 4
2021	RZR Turbo S
2021	RZR Turbo S 4
2021	RZR XP Turbo
2021	RZR XP 4 Turbo

Remedy: Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free inspection and repair. Polaris is notifying all dealers and contacting registered owners directly.

Incidents/Injuries: Polaris has received 136 reports of clutch failure, including 8 reports of debris and clutch component ejection that damaged nearby parts of the vehicle. No injuries have been reported.

Sold At: Polaris dealers nationwide from March 2019 through October 2020 for between $18,600 and $32,300.

Manufacturer(s): Polaris Inc., of Medina, Minn.

Manufactured In: Mexico

Recall number: 21-709

SVR’s Take

This is the 7th recall by Polaris in 2020. As the largest manufacturer you would expect them to have more recalls but this seems to be a disproportionate amount. The recall must also be disconcerting for management in the context of the company’s massive recalls of several years ago and their focused attempts to address quality control issues. In addition, the recall involves their most recent top line UTVs, the RZR PRO XP. There is also a relatively high number of incidents for this recall. Typically there are only a handful of incidents or even none at the time of the recall. SVR tracks industry recalls on an ongoing basis.

Can-Am Q2 Earnings

Posted on September 8, 2020 by Marc Cesare

The new 2020 Maverick X3 X rs Turbo RR with a 195 hp engine — The new Maverick X3 X rs Turbo RR is one of several 2020 Maverick models that are powered by the new 195 hp Turbo RR engine.

Can-Am recently reported their earnings for Q2 fiscal year 2021. North American retail sales were stronger than expected across all categories given the COVID pandemic. Management reported revenues of $1,233.3 million, a decrease of $226.2 million or 15.5% which was primarily related to the COVID related temporary suspension of production. Revenues for the North American Year Round segment, which includes side-by-sides and ATVS, decreased by $113.4 million, or 15.4% to $621.2 million. Revenues decreased despite strong retail sales because sales were drawn from existing dealer inventory while production was lowered because of Covid.

Retail Exceeds Expectations

Similar to reports from Polaris, Can-AM Q2 earnings had very strong sales for side-by-sides and ATVs. Consumers turned to off-road riding as a socially distant alternative activity during the pandemic. In addition, discretionary income from money not spent during Covid inactivity drove sales. Similar to Polaris, Can-Am also attracted a lot of new powersports customers, but lost market share as dealer inventory was depleted while production greatly reduced.

Can-Am Q2 Earnings Highlights

The following are some of the highlights from the earnings call that are related to the small, task-oriented vehicle market.

Can-Am powersports retail sales were up 40% in North America (NA) and were strong in all categories
Company is constructing a new facility in Juarez, Mexico to meet side-by-side vehicle demand – should be online in fall 2021
Management reports doing better than expected when first going into Covid
Can-am NA side-by-side retail up high 50% compared to industry up low 70%
Lost market share because high product demand and production shutdown depleted inventory.
NA dealer powersports inventory was down 51%
People turned to powersports in their free time under the restrictions of the pandemic
Can-Am attracted new powersports customers and customers from other brands with off-road vehicles leading the way – new to BRP customers up 51% overall for the quarter with up 74% for off-road
Usually around 10-15% are new customers
For the season, NA off-road retail increased low 20% for industry with Can-Am side-by-side up low 40%
Side-by-side retail strong internationally up almost 50% in EMEA and ~30% in Asia Pacific
Total NA dealer inventory down 51% and this represents down $1 billion of inventory
Management reports loss of maybe 1-2 points of market share as depleted inventory drove customers to other brands

Learn more: Seekingalpha.com (Earnings call transcript)

SVR’s Take

This was a good quarter for Can-Am and the industry in general. New customers with money to spend and in search for Covid safe activities turned to powersports and off-road riding in particular. The large portion of new to powersports customers gives the companies a chance to create more lifetime off-road customers as well as cross sell them other powersports products. It will be interesting to see if the strong consumer demand can be maintained going forward.

Polaris Q2 2020 Earnings

Posted on August 4, 2020 by Marc Cesare

Polaris General 4 1000 utility vehicle — Four-passenger UTVs like the Polaris General 4 1000 helped drive retail sales despite the pandemic.

Polaris Q2 2020 Earnings summary

Polaris recently reported their financial results for fiscal year 2020 2nd quarter and they were better than expected. The company reported sales of $1.512 billion for the quarter, a decrease of 15% year over year. Adjusted income decreased 25% from $107 to $81 million. Management stated that results “significantly outpaced company expectations” in the face of the pandemic. In the ORV/Snow segment sales were $953 million, a decrease of 9% year over year with ORV decreasing 14%. The powersports industry experienced strong retail sales, especially in off-road vehicles. Management attributed the strong sales to people seeking family enjoyment, having more free time and fewer alternatives for spending money because of the pandemic.

Polaris Q2 2020 Earnings Highlights

The following are highlights from the earnings call that relate to the small task-oriented vehicle market.

NA powersports industry retail was up high 30% in Q2
Polaris off-road vehicle retail increased low 60% as side-by-side and ATV sales were both strong.
New customers were key drivers with more females, people of color, families and younger buyers
Management reported that 75% of their off-road vehicle and motorcycle buyers in Q2 were new to Polaris.
Solid demand for four seat and crew UTVs for family usage
A significant portion of ORV sales came from existing dealer inventory which decreased 45% in the quarter as Polaris shutdown or decreased plant production
Production is “chasing demand with some shortage”.
Japanese competitors are gaining share, in part, due to having more product available.
Global Adjacent Market sales decreased 36% for the quarter to $78 million from $122 million
ORV retail sales continued strong growth in July

Guidance for 2nd Half

Polaris retail sales anticipated to outpace overall market.
Strong performance in second half expected by ORV.
ORV/Snow sales down 7% for the first half of the year but expected to be up overall for the full year as dealer inventory is replenished and powersports demand maintains modest growth.
Management anticipates continued weakness in adjacent markets given the dependence on government, university, commercial and rental sales.

Learn more: Polaris Q2 2020 Earnings Call Transcript

SVR’s Take

The fallout from the pandemic appears to have been good for the off-road utility vehicle market, at least for recreational purposes. As a relatively safe activity in terms of avoiding the virus, riding UTVs appears to have provided an antidote to being in lockdown or some degree of it. It will be interesting to see if it continues to do so. They are still large purchases and with the virus flaring up in many places, potential buyers could become more cautious. However, the acquisition of a large portion of new customers to date bodes well for Polaris in the future. Marc Cesare, Smallvehicleresource.com

2020 Small Task-Oriented Vehicle Study

Posted on July 31, 2020 by Marc Cesare

In a new market study on the small task-oriented vehicle (STOV) market in the US and Canada, Small Vehicle Resource (SVR), LLC describes an industry in midstream transition as:

Climate policies, COVID-19 effects and new technologies usher in the urban/suburban mobility market and underpin an expanding consumer market for personal transportation vehicles (PTVs), as well as commercial markets for light duty utility vehicles;
The transition from lead acid to lithium batteries continues, raising performance and transforming vehicle longevity and recycling value.
The maturing off-road utility and recreational UTV market remains fundamentally strong and highly competitive, and is poised to follow the automobile and golf-car type vehicle markets into electrification;

The study provides a strategic analysis of the rise of urban/suburban mobility market driven in the context of the STOV industry. Steve Metzger, SVR Managing Director, states that, “The intersection of climate policy, new technologies and COVID-19 effects will lead to a ‘dispersed living lifestyle’, and provide new opportunities in the urban/suburban mobility market.” He further remarks, “The STOV industry, particularly the Big Three golf manufacturers with a foothold in gated communities, have the core competencies to transition from golf-centric to urban/suburban centric. The question is will they?”

Marc Cesare, SVR Managing Director, adds that, “While the UTV manufacturers will see solid growth in their market, some are capable of pursuing the urban/suburban mobility market as well. However, their DNA, profit centers and distribution channels are primarily off-road and powersports. Culturally, the pursuit of the urban/suburban mobility opportunity may be a difficult paradigm shift.”

The study, the tenth in the series since 2000, covers market trends from 2016 and develops projections to 2025. The key segments are golf fleet, personal transportation vehicles, light-duty utility vehicles, and off-road utility and recreation vehicles. In total, these segments are forecasted to reach close to 1,200,000 new vehicles in 2025. Electric powered vehicles continue to make inroads. Approximately a third of the market is electric powered, primarily in the form of fleet golf cars, PTVs, as well as light duty utility vehicles, of which approximately 80% will be electric by 2025. Key trends and projections for the market include:

Demand for electric powered STOV vehicles will increase to over 450,000 vehicles in 2025.
Golf course fleet demand will decline slightly during the trend period but will remain overwhelmingly electric powered, around 80%.
Demand for PTVs will be strong.
Lithium battery powered vehicles will continue to make inroads as more models become available with this option.

The study is entitled, Trends and Outlook for Small, Task-Oriented Vehicles-2016-2025- An Analysis of the Emerging Urban/Suburban Mobility Market. For additional, detailed information see the study brochure with table of contents or contact:

Steve Metzger smetzger@smallvehicleresource.com

(914) 293-7577

Honda UTV Recall Includes Talons

Posted on June 26, 2020 by Marc Cesare

The Honda Talon 1000X is part of the recall.

Honda UTV Recall Summary

Honda announced a large recall of about 25,000 vehicles including model year 2019 and 2020 Pioneer and Talon utility vehicles. The Honda UTV recall involves both three and five passenger Pioneer UTVs as well as two and four passenger Talon UTVs. The vehicles can move or roll in park position, creating a crash and injury hazard. Consumers should stop using the vehicles and contact their Honda Powersports dealer for a free inspection and repair. The following recall information is from the Consumer Product Safety Commission.

Honda UTV Recall Details

Hazard: The ROV can move or roll when in the park position, posing crash and injury hazards.

Remedy: Repair

Recall date: June 18, 2020

Units: About 25,000

Description: This recall involves certain Model Year 2019 & 2020 Honda Pioneer 1000 and Talon 1000 side-by-side vehicles. The recalled vehicles were sold in various colors, including: red, blue, green, gray and yellow. The name “HONDA” is on the front, sides and the rear of the vehicle. The model name Pioneer 1000 or Talon is printed on a label located on both sides of the vehicle. For the Pioneer 1000, the serial number (VIN #) is stamped in the frame at the left rear, below the tilt-up bed/seat. For the Talon 1000, the VIN# is stamped on the left side of the frame, under the left front fender.

MY	Model	VIN Start	VIN End
2019	Pioneer 1000 – 3 Passenger(SXS10M3*)	1HFVE04**K4300061	1HFVE04**K4301919
2019	Pioneer 1000 – 5 Passenger(SXS10M5*)	1HFVE04**K4300061	1HFVE04**K4302460
2019	Talon 1000 – 2 Passenger(SXS10S2*)	1HFVE05**K4000003	1HFVE05**K4003902
2020	Pioneer 1000 – 3 Passenger(SXS10M3*)	1HFVE04**L4400001	1HFVE04**L4402426
2020	Pioneer 1000 – 5 Passenger(SXS10M5*)	1HFVE04**L4400001	1HFVE04**L4402984
2020	Talon 1000 – 2 Passenger(SXS10S2*)	1HFVE05**L4100001	1HFVE05**L4102280
2020	Talon 1000 – 4 Passenger(SXS10S4*)	1HFVE06**L4000002	1HFVE06**L4002100

Remedy: Consumers should immediately stop using the recalled ROVs and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair. Honda is contacting all known purchasers directly.

Incidents/Injuries: The firm has received three reports of the ROVs moving while in the park position. No injuries have been reported.

Sold At: Authorized Honda Powersports dealers nationwide, from November 2018 through March 2020, for between $15,000 and $24,000.

Manufacturer(s): American Honda Motor Co., Inc., of Torrance, Calif.

Manufactured In: United States

Recall number: 20-751

SVR’s Take

This is another large recall by one of the major UTV manufacturers. Honda had a large recall last summer that included some of the Pioneer vehicles involved in this recall. This is more evidence that the industry as a whole seems to have a quality control problem. A significant percentage of the new vehicles being sold each year are being recalled. BRP is the only major UTV manufacturer that has not had a large vehicle recall in the last few years. Smallvehicleresource.com maintains a list of small, task-oriented vehicle recalls. Marc Cesare, Smallvehicleresource.com