CFMoto Hitting The Value Price Point

Posted on April 3, 2015 by Marc Cesare

The UForce 800 from CFMoto.

A recent article in PowerSports Business highlighted the popularity of CFMoto’s UForce 800 utility vehicle. Targeting the work segment, like ranches and farms, the UForce 800 offers features like a 62.5 hp, V-twin-powered, 8-valve, 4-stroke liquid cooled engine with EFI, 3,500 lb winch, LED headlights, hydraulic disc brakes, AGM battery, 14″ ally wheels and 11 inches of ground clearance. A key to its popularity is the relatively low price point with an MSRP of $9,999 and $10,799 for the model with electronic power steering. CFMoto offers a lineup of work and recreational UTVs with prices ranging from $8,449 to $11,299. The company has been working with Minnesota-based company KFI to provide popular aftermarket accessories for their vehicles but also plans on manufacturing their own in the near future. Learn more: Powersportsbusiness.com

Comment: The more well known brands in the UTV market have been able to consistently increase prices for their vehicles for a number of years, reflecting the strong demand for UTVs as well as ongoing improvements in the vehicle offerings. While the name brand vehicles continue to offer value even at their higher price points, they are providing space in the market for even more value oriented competitors in the $8,500 – $11,000 price range. CFMoto has found some success in this space as well as companies such as Kymco. Typically this success has been with work utility vehicles and some recreational use vehicles. However, the latter are not for the more hard-core sport or high performance recreational use. It’s all about buying a specific set of functionality combined with sufficient quality to get a job done for a reasonable price.

New Small Task-Oriented Vehicle (STOV) Study from SVR Forecasts Significant Growth

Posted on March 11, 2015 by Marc Cesare

Small Task-Oriented Vehicle (STOV) market at the Edge Of Significant Transformation & Growth in Next Five Years

In a new market study on the small vehicle market, Small Vehicle Resource (SVR), LLC predicts significant growth over the 2015-2019 period. The market research reveals four trends coming together that will result in market gains of between 8%-12% in the forecast period and an industry value in the range of $20-$25 billion at retail. These trends are:

Growing appreciation in a highly diverse market for the effectiveness of small vehicles specifically designed to meet individual segment needs (small, task-oriented vehicles (STOVs);

Superior product development in drive trains (AC electric plus the addition of EFI and hybrid drives in many new market segments) and automotive-type components, which heightens performance capabilities and raises the bar in the cost/benefit trade-off;

Critical improvement in distribution and sales systems that cater to manufacturers’ non-traditional markets—in conjunction with,

Increased use of the internet-based information to drive sales.

“Much better economic performance for the last three quarters of 2014 and a strong positive outlook for 2015, provides the launching pad for SVR’s positive forecast for 2015-2019,” states Steve Metzger, SVR Managing Director. “The drag on industry growth from the 2008/09 recession and subsequent slow recovery appears to be over,” he went on to say. Further, Metzger explains, “With the exception of fleet golf cars, where demand is stagnant at best, the privately-owned (primarily personal transportation vehicles), utility vehicle, and off road segments should all see gains in mid-single digits to low double digits range over the next five years.” The report notes that the stability of the golf-related market offers to golf car manufacturers the cash flow breathing room to transition to non-golf segments.

Marc Cesare, SVR Managing Director adds, “We put special emphasis on the off-road market in this report, because it has become the competitive vortex for golf car manufacturers seeking new markets, the powersports industry, and traditional manufacturers of work related utility vehicles.” “The spectrum of off-road solutions has greatly expanded,” Cesare notes, “as manufacturers seek growth by broadening their product lines and targeting market sub-segments with models tailored for specific end-use applications.”

The new study, the seventh in the series of studies produced by SVR since 2000, covers utility, off-road, and personal transportation vehicles, and fleet golf cars.

The study is entitled, “The Small, Task-Oriented Vehicle Market: Greater Product Diversity Opens New Avenues of Market Competition–Trends from 2010; Forecasts to 2019. For additional, detailed information see our SVR STOV Market Study Brochure or contact:

Steve Metzger at smetzger@smallvehicleresource.com or (914) 293-7577

Yamaha Viking VI Earns 2015 FinOvation Award

Posted on March 4, 2015 by Marc Cesare

The new Yamaha Viking VI EPS side-by-side.

The Yamaha Viking VI EPS side-by-side that earned a 2015 FinOvation Award from Farm Industry News magazine.

From the press release:

Yamaha Motor Corporation, U.S.A., was awarded the 2015 FinOvation Award from Farm Industry News magazine for its Viking VI Side-by-Side (SxS) utility vehicle. The FinOvation Award is designed to celebrate the spirit of innovation and recognize new products that have received the most interest from Farm Industry News readers. This is the second consecutive year Yamaha has received the award. In 2014, the premier Viking model that introduced the first true three-person seating capacity in a SxS vehicle earned a FinOvation Award.
“We’re honored to receive the FinOvation award for a second consecutive year,” said Steve Nessl, ATV/SxS marketing manager, Yamaha Motor Corporation. “It’s especially rewarding to know the award is based on positive responses from people who rely so heavily on their utility vehicles for day-to-day toughness, durability and performance in the field.” Nessl accepted the award on behalf of Yamaha at the 50th Annual National Farm Machinery Show in Louisville.
In its report announcing the 2015 FinOvation Award winners, Farm Industry News wrote, “Yamaha made a statement with the new Viking side-by-side. This machine offers six-person seating, more room for cargo and has a number of convenience features, including electronic power steering and differential lock.”
Yamaha introduced the Viking VI EPS six-person SxS in June 2014. The extended cab Viking VI combines Yamaha performance and durability with the comfort and convenience of a Viking—with maximum headroom, legroom and shoulder room for six occupants.
Similar to the three-seat Viking introduced in 2013, the Viking VI is made for tough off-road duty and features Yamaha’s industry-leading Ultramatic™ fully automatic transmission, On-Command® four-wheel drive system, Electric Power Steering (EPS) and Yamaha’s proven and powerful 700cc-class engine. With 600-pounds hauling and 1,500-pounds towing, the Viking VI is made to be the toughest, hardest working and most off-road capable six-person SxS ever.
“We know farmers and ranchers demand the hardest-working and most dependable equipment for use on their operations,” added Nessl. “It’s rewarding to know the Viking models have earned their stamp of approval.”
Yamaha is committed to continually expanding its line of class-leading SxS vehicles and has recently unveiled the all-new Wolverine R-Spec. “With the introduction of the Wolverine R-Spec, Yamaha is furthering its position in the growing multipurpose SxS segment of the off-road business,” added Nessl. All of Yamaha’s ATV and SxS vehicles are being assembled in the U.S.A. at Yamaha’s factory in Newnan, Georgia, for worldwide distribution. Learn more: PRWeb.com

XY Powersports Introduces Vaterra 1100

Posted on March 3, 2015 by Marc Cesare

The Vaterra 1100L, the four person versio of the new Vaterra side-by-side by XY Powersports.

XY Powersports, an Ohio based distributor, recently introduced their new Vaterra 1100 side-by-side. The new side-by-side is powered by an electronic fuel injected 1100cc engine that produces 71.5 horsepower and 67 pounds of torque at 4000 RPM. The Vaterra is offered in a two or four person version. Other key features include:

Rear-wheel driveshaft
Switchable to 2-wheel-drive and 4-wheel-drive with a differential lock
Automatic CVT
Power steering
Liquid twin-fan cooling system
DOHC 16 valves
Electronic e-brake
Hydraulic assist bed with mounted rails on both sides
Protective overfenders
Alloy wheels
Half doors
Plastic canopy
3000 lbs. winch
3500 lbs. hitch ball
Sealed under-seat storage

The two seat Vaterra 1100 EFI is priced at $12,599 and the four seat Vaterra 1100L EFI is priced at $13,999. Learn more: XYOutdoors.com

Comment: The XY Powersports products are value priced. The name brand manufacturers have been able to raise prices on their vehicles for a number of years without hurting sales. The demand for vehicles has been increasing and the features and capabilities of the vehicles has increased as well, so customers have been willing to pay the price. However, rising price points have provided some room in the market for value priced brands such as Kymco, XY Powersports and others to find some success. The challenge for these value oriented companies is to maintain a steady stream of new models that provide value through a combination of price and features in comparison to name brand vehicles.

Exmark Adds Utility Vehicles to Product Lineup

Posted on March 2, 2015 by Marc Cesare

The new 700S utility vehicle from Exmark.

Exmark, a manufacturer of commercial mowers and lawn care equipment, recently announced the addition of two gas-powered utility vehicles to their product line, the Exmark 500S and 700S. Both vehicles feature electronic fuel injection for their 4-stroke SOHC engines. Exmark is a Toro owned brand and the new utility vehicles appear to be the same new utility vehicles offered under the Toro brand. Additional vehicle features include:

Automatic CVT
Dynamic engine braking
Hydraulic disc brakes
2WD/4WD selection
Tilting rear cargo box convertible to a flatbed
Cargo box capacity of 600 lb. for the 500S and 1,000 lb. for the 700S
Fully independent suspension with dual A-arms front and rear
10 inches of ground clearance and 10 inches of front and rear suspension travel
Standard brush guard an adjustable CAM-style shocks
Integrated front and rear two-inch receivers

The vehicles will be available March 2015.

Learn more: Agprofessional.com

Comment: SVR believes Arctic Cat is producing these utility vehicles for both Toro and Exmark. It’s an example of the different methods companies are using to expand their distribution channels in the UTV market. Arctic Cat can reach the work UTV segment by manufacturing for Toro and Exmark while those companies can concentrate on their strengths, developing lawn care equipment, but still have a presence in the growing UTV market. In addition these vehicles offer more recreational crossover appeal then the traditional work vehicles Toro has and continues to offer. By selling under the Exmark brand as well, Toro further expands their UTV distribution.

North Carolina Bans UTV Seller Riders Wholesale

Posted on February 6, 2015 by Marc Cesare

The Attorney General of North Carolina has permanently banned Barry T. Moose, Jr. of Statesville and his company, Mooser Moto, LLC, from advertising, selling or collecting payments for any products or services in North Carolina. The online seller of UTVs, ATVs, scooters, go-karts and mopeds, which did business under the name Riders Wholesale, had accepted payments for vehicles that they never delivered or delivered damaged. In addition, Riders Wholesale refused to provide refunds. Approximately 140 customers filed complaints about the company. The judge’s order not only banned the company from doing business but order it to pay $438,000 in consumer refunds.

Learn more: JDnews.com

Polaris Reports 2014 Q4 Earnings

Posted on February 3, 2015 by Marc Cesare

The new four passenger RZR 4 EPS in Havasu Red Pearl from Polaris.

A constant stream of new models like the new four passenger RZR 4 EPS in Havasu Red Pearl help keep Polaris growing.

Polaris continued on the path of strong growth with another record quarter. Managment reported net income was $135.4 million for the fourth quarter of 2014, up 25 percent from the previous fourth quarters net income of $108.7 million. Sales for the fourth quarter of 2014 totaled a record $1,275.0 million, an increase of 18 percent over last years fourth quarter sales of $1,083.7 million.

For the full year ended December 31, 2014, Polaris reported net income from continuing operations of $454.0 million for the full year 2014, up 19 percent from the previous years net income from continuing operations of $381.1 million. Sales for the full year 2014 totaled a record $4,479.6 million, an increase of 19 percent compared to sales of $3,777.1 million for the full year 2013. Some of the highlights related to small, task-oriented vehicles follow.

Off-Road Vehicle sales , which includes ATVs and UTVs or side-by-sides, increased 19% from the fourth quarter 2013 to $781.5 million. This increase reflects continued market share gains on strong demand for both ATVs and side-by-sides.
Polaris North American ORV unit retail sales were up low-double digits percent from the 2013 fourth quarter with consumer purchases of side-by-side vehicles up double-digits percent and ATV retail sales up high-single digits percent for the 2014 fourth quarter.
Polaris introduced over twenty new MY14.5 and MY15 ORV models in 2014, including the all-new RZR® XP 900 trail and RZR® XP4 900 trail, several new value models, and two models in a newly defined category of single-seat, ride-in ATVs, the Polaris ACE.
Polaris extended their market share lead in the North American ATV industry for the fourth straight year with retails up mid-single digits in an industry that only rose slightly.
ACE sales accelerated notably in the fourth quarter as marketing and the new 570 model began to impact the marketplace.
Four recent model year ’15 introductions include the new electronically fuel-injected RZR 170 and the new RZR 900S4, both of which have already begun to ship.
Commercial. Sales increased by over 80% in the fourth quarter driven by initial Ariens-Gravely supply vehicle shipments, strong national accounts growth and notably improved BRUTUS and Bobcat retail performance.
In the Small Vehicle division which includes GEM, Aixam and Goupil, fourth quarter revenue declined 11% due to the weak French economy afflicting both Aixam and Goupil. For the full year 2014, sales increased 28% fueled by Aixam market share gains and increased sales from both our GEM and Goupil businesses.
Polaris significantly outperformed in the ORV market in Europe.
For 2015 management expects ORV is expected to grow mid-single digits, driven by new products but offset by further implementation of RFM, their new inventory management program, and slower international demand.

Learn more: Seekingalpha.com (earnings call transcript)

Comment: Polaris continues to dominate the market, although like other manufacturers they have been hurt by slower sales in Europe and in countries like Russia. Expect more of the same in 2015 as they continue to rollout products to segment the market and cover a range of price points. They are likely to add more models for their push into the commercial segment as well.

Arctic Cat Announces FY2015 Q3 Earnings

Posted on February 3, 2015 by Marc Cesare

The 2015 Wildcat Sport XT, a recent addition to the Arctic Cat side-by-side lineup.

Last week Arctic Cat reported on their third quarter earnings for fiscal year 2015. For the quarter ending on December 31, 2014 net sales for the third quarter decreased to $193.7 million from $225.8 million for the same quarter last year and net earnings decreased to $7.5 million or $8.9 million as adjusted from $12.1 million. Year-to-date net sales increased 2.5% to $599.9 million from $585.1 million a year ago and net earnings decreased to $26.4 million or $32.3 million as adjusted from $41 million. Here are some highlights of the earnings call as it relates to utility vehicles.

ATV and UTV sales for the quarter increased 7.3% to $83.9 million from $78.2 million as growth in Wildcat side-by-sides were offset by decreases in core ATVs.
For the first three quarters to date sales of ATVs and UTVs decreased 4.3% to $217.3 million from $227.2 million. Strong sales of Wildcat side-by-side models were offset by lower than planned sales of core ATV sales to dealers in North America and international regions, including Russia.
A $7 million charge in the 4th quarter will be taken related to reducing core ATV inventory.
Wildcat models gained further market share in this category during the third quarter this year.
For the calendar year sales of side-by-side Wildcats grew 34% versus the industry’s 17%.
Three new Wildcat Sport models on a new 60-inch wide chassis were introduced. The new chassis’ width is a mid-sized option between the original Wildcat and the recently successfully introduced Wildcat Trail model, which has a narrower 50-inch stance.
A new 2016 model year HDX Prowler will be announced in early February
Arctic Cat signed an OEM agreement with a terrain company during the third quarter to build private label side-by-side vehicles for the commercial line equipment business. They expect to begin shipping products to this customer in March.

Learn more: Seekingalpha.com (earnings call transcript)

Comment: In search of growth many UTV manufacturers are looking to enter into other market segments either by adding new product lines or developing partnerships. Arctic Cat’s new Sport line and OEM agreement are more examples of this trend. From comments during the earnings call, the OEM agreement is with Toro. This will give Arctic Cat a distribution network into the commercial and turf markets. Their current powersports network of dealers is not the best match for tapping into the commercial market. For Toro, UTVs are a relatively small part of their business and development resources are probably better spent their core products, while they take advantage of Arctic Cat’s engineering expertise in the UTV market.

Michelin Launches Non-Pneumatic Wheel For Mowers

Posted on January 23, 2015 by Marc Cesare

The Michelin X Tweel non-pneumatic tire on a John Deere mower.

Michelin recently launched their X Tweel non-pneumatic tire for some of their commercial mowers. The airless tire and wheel uses

“…a combination of deformable polyurethane spokes, a steel-and-rubber outer rim, and rigid metal hub. The outer rim—called a shear beam—carries most of the load. The spokes and hub distribute the load across different parts of the shear beam as the tire rolls over objects.”

The tire is available for their ZTrak series of mowers and according to John Deere lasts two to three times longer than other tires. The X Tweel are only being used on slow-moving vehicles currently because at high speeds, airless tires tend to vibrate and make lots of noise. The company sees golf cars and small utility vehicles as the next likely market. The reported cost is $749 for a pair of tires. Learn more: Popsci.com

Comment: Non-pneumatic tires are a likely to become more prevalent in the next three to five years. Polaris has also recently began selling their non-pneumatic wheel into commercial markets after first being used for some of their military vehicles. While it would seem ideal for high end side-by-sides being used on rough trails, Polaris has noted that the wheels have to be in effect “tuned” for a model’s and suspension, so it is likely that commercial users will be the first to use the wheels. Currently a set of four of the Polaris Terrainarmor wheels costs $4,000 and includes a speed key to limit vehicle speed to 25 mph.

What’s Cooking On The STOV

Posted on January 22, 2015 by Marc Cesare

Highlighting some of the many applications for small, task-oriented vehicles

This Polaris UTV is being used to create a skate path on Mirror Lake in Lake Placid, NY.

A new winter time use for utility vehicles: clearing skating paths. In Lake Placid, North Elba Park District employees recently plowed a skating path around Mirror Lake using a newly purchased utility vehicle. The idea was first tried last year, but this year the community, led by a local resort owner, raised funds to buy a utility vehicle expressly for the purpose of building the skating path. The lighter utility vehicle allowed employees to safely get onto the ice earlier than heavier alternatives. The community raised around $32,000 for the Polaris UTV which they accessorized with a cab, plow and broom attachment. Donors included local resorts, foundations and citizens as well as a number of private donors from different states. Learn more: Lakeplacidnews.com

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