Tata Motors Showcases 2 New Ace Mini-Truck Variants

Posted on November 19, 2014 by Marc Cesare

Tata Motors vehicles display at Municipalika-2014

India-based Tata Motors used the Municipalika 2014 international conference to showcase their Tata ACE Hopper Tipper BS IV – Waste Segregation and Super ACE Suction Machine BS III mini suction vehicle. The ACE Hopper Tipper BS IV is suited for door-to-door garbage collection and the Super ACE Suction Machine BS III mini suction vehicle for door-to-door sewage cleaning. According to the company the “Tata ACE Hopper Tipper BS IV – Waste Segregation fully- built Mini Garbage Tipper is available in BS III & BS IV variants, suitable for hilly terrains, and uses cathodic Electro Deposition (CED) treated body for corrosion prevention. Super ACE Suction Machine BS III is equipped for high pressure suction operation for a depth of upto 25 feet and diameter upto 75 mm – to clean thick sludge, and offers 39% vehicle gradeability making it suitable for hilly terrains” Both vehicles are small enough to operate in narrow lanes found in the dense urban areas of India.

Municipalika is an international conference and exhibition that focuses on emerging trends in sustainable habitat and integrated cities. India has experienced rapid population growth in urban areas in recent years and that is expected to continue for some time. Learn more: Rushlane.com

Comment: These products are a good example of the differences between the US and other markets such as Asia when it comes to small, task-oriented vehicles. The US cities are neither as physically cramped or densely populated as some of the “mega” cities in other parts of the world. The characteristics of these cities create a greater demand for smaller vehicles that require lower speeds and smaller dimensions.

E-Z-GO Announces New SC-48 Battery Charger For Fleet Golf Cars

Posted on October 29, 2014 by Marc Cesare

The new SC-48 battery charger developed Delta-Q Technologies in collaboration with E-Z-GO.

The new SC-48 battery charger developed by Delta-Q Technologies in collaboration with E-Z-GO.

E-Z-GO has introduced their new SC-48 battery charger for for its 2015 model year RXV® and TXT® electric fleet golf cars. The high-efficiency charger was developed in collaboration with Delta-Q Technologies. Key features of the charger include:

Durable sealed die-cast housing
High frequency charger
Charger adjusts charging performance based on measurements from the temperature sensor installed on the golf car’s battery pack
Repairable in the field by E-Z-GO technicians and distributors
Charger cord will release from the charger if accidentally pulled
LED charge indicators on both the charger and vehicle keep customers up-to-date about AC power status, charging progress, charge completion, or whether a fault has occurred.

The following specifications on the charger are from the Delta Q Technologies website.

DC Output
Maximum DC output power 750 W
Nominal DC output power 650 W
DC output current (48 V) 13 A
Estimated charge time at 75% depth of discharge 6.7 hours
Temperature compensation – Yes, third pin on paddle/ receptacle
DC connection resistance check – Yes

AC Input
Nominal AC input 110 V
Maximum AC draw at 110 VAC 7.5 A

Learn more: Worldgolf.com

Pennsylvania Passes LSV Law

Posted on October 29, 2014 by Marc Cesare

The 2015 GEM eM1400 LSV should benefit from the new Pennsylvania LSV law.

The Pennsylvania legislature passed and the governor has signed a law that allows low speed electric vehicles to operate on roads with speed limits up to 25 mph. At the discretion of local governments and the Secretary of Transportation, the LSVs could be permitted on roads with posted speed limits between 25 and 35 mph. LSVs would be required to be registered, licensed, and insured like passenger vehicles. Pennsylvania was one of the few remaining states in the United States that did not have an LSV law. The legislation would become effective in May of 2015. Learn more: Senatorgreenleaf.com

Arctic Cat Reports Earnings For Fiscal 2015 2Q

Posted on October 26, 2014 by Marc Cesare

Despite weak ATV sales, side-by-side sales increased as demand for Arctic Cat Wildcat Trail models remained strong.

Arctic Cat reported revenue of $262.5 million for the fiscal 2015 second quarter, an increase of about 10% from last year. Sales were driven by their snowmobile and parts, garments and accessories (PG&A) divisions which offset weakness in their ATV business that includes ATVs and side-by-sides. The ATV business declined 4% from the previous year’s quarter and 10% year to date. The company fell short of their expectations for ATV sales but strong sales continued for their Wildcat side-by-side models. There was also a significant charge for a recall of some of their older ATVs. Some highlights of the earnings call as it relates to utility vehicles/side-by-sides include:

15 new 2015 model year ATVs and side-by-sides were unveiled in the quarter
Demand for their side-by-side products remains strong driven by the Wildcat Trail line and recently introduced Wildcat Sport
Wildcat sales also helped generate revenue for the PG&A business
Management reports Arctic Cat is outperforming the overall side-by-side market

Learn more: Seekingalpha.com (earnings call transcript)

Comment: Despite weakness in their ATV business Arctic Cat remains a strong competitor to Polaris in the high performance segment of the side-by-side market. They are particularly strong in the trail sub-segment where the vehicles are narrower to allow access to legacy ATV trails.

Polaris Reports Strong Quarterly Earnings for Q3 2014

Posted on October 25, 2014 by Marc Cesare

RZR XP 1000’s like the new 2015 RZR XP 1000 EPS Desert Edition helped drive sales.

Polaris reported an 18% year over year increase in revenue for third quarter 2014 driven by increases in their motorcycle, PG&A and Off-road Vehicle (ORV) divisions. ORV which includes side-by-sides and ATVs recorded a 17% increase. With another strong quarter, management raised their guidance for full-year results in 2014. Some highlights of the earnings call as it relates to Small, Task-Oriented Vehicles include:

ORV revenue up 14% year-to-date
Market share gains in the quarter for both side-by-sides and ATVs in North America adds to their #1 positions
ORV revenue was driven by side-by-sides that outpaced the industry believed to be growing at 10%
The 2 and 4 seat RZR XP 1000’s as well as the RZR 900 Trail are selling well
In the commercial UTV segment Brutus retail sales continue to grow sequentially and year-over-year for both Polaris and Bobcat
Commercial national accounts and fleet sales were strong
The Gravely Atlas UTV was launched in the quarter
Defense related ORV revenue was flat for the quarter but up 25% year-to-date with international sales of the MRZR contributing
The Small Vehicle division reported an 8% revenue increase in the quarter due to GEM and Aixam
Year-to-date Small Vehicle revenue is up 52%
GEM reported retail sales increase of 20% on action in B2B and GSA sales
While Aixam grew despite a weakening European market, Goupil revenue decreased with softness in the French economy, their major market
The Opole, Poland factory opened and will produce ORV and other products for the European and Middle East markets
International sales were helped by strong ORV sales in India and Australia
Currency issues provided some headwind in foreign markets

Learn more: Seekingalpha.com (earnings call transcript)

Comments: Despite some macro economic issues the Polaris juggernaut keeps on rolling as they continue to add market share despite increased competition in the side-by-side and ATV markets. Their large market share and subsequent production volume gives them an advantage in driving down vehicle costs and provides funding for their robust R&D budget and new model pipeline. The large number of models they market allows them to target specific sub-segments with specific vehicle capabilities and characteristics. In turn this makes it more difficult for competitors to match up on a vehicle to vehicle basis in each sub-segment.

Honda Recalling 2014 Pioneer 700 UTVs

Posted on October 25, 2014 by Marc Cesare

All the two and four passenger versions (shown here) of the Honda 2014 Pioneer 700 are being recalled.

Honda announced a recall of all models of the 2014 Honda Pioneer 700 utility vehicle because of an issue with debris and vegetation accumulation on the middle skid plate. The buildup can come in contact with the exhaust system resulting in smoke or fire. There have been 10 reports of incidents involving fires but no injuries have been reported. The recall involves both two and four passenger versions sold from August 2013 through September 2014. The following vehicle models and serial numbers are affected by the recall:

Model Number   Serial Number Range (All begin with 1HF)   Number of Seats
SXS 700M2 2AC VE0225E4000006 to VE022XE4006304   2
SXS 700M2 4AC VE0284E4000003 to VE0284E4001202   2
SXS 700M4 AC VE0204E4000013 to VE020XE4006849   4
SXS 700M4 3AC VE0268E4000004 to VE0269E4001503   4

Owners should immediately stop using the recalled vehicle and take it to an authorized Honda dealer to have the original middle skid plate removed and an updated middle skid plate installed free of charge. Learn more: CPSC.gov

Comment: This is a large recall, about four to five times the number of utility vehicles that we typically see recalled. This is also a blow to Honda in their efforts to become more competitive in the UTV market. The Pioneer models, both the 700 and the 500 which were not recalled, were their latest entry into the market. The introduction of the Pioneer UTVs represented a renewed commitment and dedication of resources by Honda towards the side-by-side market.

Polaris Reveals DAGOR: Ultra Light Vehicle For Defense Applications

Posted on October 8, 2014 by Marc Cesare

The DAGOR during testing in challenging terrain.

The DAGOR loaded with troops and their gear.

A rear view of the DAGOR loaded with troops and their gear.

Polaris Industries will be debuting DAGOR, their new ultra light vehicle for defense applications at the 2014 Association of the United States Army Annual Meeting, in Washington, D.C. , Oct. 13-15. The vehicle is designed to provide rapid air transportability, payload capabilities and advanced mobility in off-road conditions to meet a wide range of expeditionary missions. DAGOR can carry 3,250 lbs. of payload or nine infrantryman and incorporates off-the-shelf components such as a J98 diesel engine for easier maintenance in combat operations. The open design of the cargo bed maximizes loading space, flexibility and access for mission-essential equipment. The weight and dimensions of the vehicle are designed to increase range and facilitate rapid air transport. The DAGOR has been certified for CH-47 Chinook Internal Air Transport (IAT), air drop, and UH-60 Black Hawk Sling Load. Learn more: Seekingalpha.com

Comment: Growing revenue in military applications has been a strategic goal for Polaris for several years. A sizable portion of their military sales have been for US special forces and those of allied countries. In the past they have sold smaller vehicles whose design has been based in part on existing ATV and UTV technology. The DAGOR represents a significant step up in vehicle size and represents a new vehicle segment. This may portend a movement towards larger vehicles, although Polaris Defense vehicles to date have put an emphasis on mobility and lightweight vehicles. Moving to even larger vehicles than the DAGOR would likely mean a shift to different military applications. Another possibility is the transitioning of the DAGOR or some variation thereof into the civilian market. Some of the potential applications that come to mind are for use in disaster zones, forest fire fighting, logging and off-road work environments such as logging, pipelines or gas/oilfields.

Polaris Opens Manufacturing Facility In Poland

Posted on September 29, 2014 by Marc Cesare

Polaris’s new manfuacturing facility in Opole, Poland. (Photo: Business Wire)

Polaris announced the opening of their new 345,000 square foot manufacturing facility in Opole, Poland. The company will manufacture ATVs and utility vehicles at the site for Europe, Middle East and Africa (EMEA) region. Opole will also house research and design for the Europe, Middle East and Africa markets allowing vehicles to be tailored to local needs. The building features include a 2,500 meter product test track and energy saving paint systems. Products should begin shipping from the facility in early 2015. Learn more: Seekingalpha.com

Comment:

Polaris Industries continues to lead the small, task-oriented vehicle (STOV) industry in an aggressive and highly effective strategic vision. This could not be better demonstrated than by its groundbreaking initiative to put engineering and manufacturing assets in Poland and to tie Opole-based production to a logistics and marketing strategy for the entire EMEA region. Management has made increasing international sales a long term strategic goal and has steadily been taking steps towards that end over the last few years. The new facility is testament to the growth they have experienced in the EMEA region.

It has to be said that Polaris is, far and away, the leader in terms of strategic vision, implementation (in engineering, production, and distribution systems), and market development. Moreover, Polaris is not wedded to ICE technology. It’s acquisition of GEM Electric Vehicles, a company long-established, but treading water for years, constituted a strategic move into electric power (along with their investment in Brammo). Polaris immediately upgraded the look of the product line with the eM1400–and gave its dealers more flexible offerings with the gas-powered M1400 series.

Pricing For Green Tech Automotive LSVs

Posted on September 27, 2014 by Marc Cesare

The G2 sedan a LSV from Green Tech Automotive

Green Tech Automotive recently announced pricing for their MyCar and G2 sedan with the MyCar starting at $17,140 and the G2 sedan at $21,250. Green Tech Automotive is projecting to build 30,000 vehicles annually, down from earlier projections of 250,000 several years ago. Learn more: Torquenews.com

Comment: As the article notes, these price points are pretty high. They will be double or close to double the price of some of the other LSVs on the market. In addition these vehicles appear to be targeting the personal transportation segment of the LSV market. This is not the majority or the fastest growing portion of the LSV market. The biggest market for LSVs in recent years has been commercial/institutional uses such federal, state and local governments, colleges and universities and parks departments. As Polaris has found out with GEM this is a slower sales process than the consumer end of the market. The current LSV market does not have the demand to meet production volume of 30,000 vehicles annually. I would be surprised if Green Tech Automotive can even reach 10% of their target.

Arctic Cat Recalls 5,600 Wildcat Trail and Wildcat Trail XT Side by Side

Posted on September 19, 2014 by Marc Cesare

The Arctic Cat Wildcat Trail XT in Mat Black being recalled.

The Arctic Cat Wildcat Trail in Lime Green being recalled.

Last week Arctic Cat announced the recall of approximately 5,600 Wildcat Trail and Wildcat Trail XT side by sides because of a potential fire hazard related to leakage from oil cooler lines. Arctic Cat has received 60 reports of oil leaking and one report of fire but no injuries have been reported.

The recall involves all 2014 Arctic Cat Wildcat Trail and Wildcat Trail XT side-by-side utility vehicles with Vehicle Identification Numbers (VIN) 000001 through 316232. The VIN is located on the frame tube near the driver’s side front wheel. These units were sold in red, green, lime green, team arctic green and mat black. The words “Arctic Cat” and “Wildcat Trail” appear on the sides of these vehicles and on the hood.

Consumers should stop using the recalled side-by-sides and contact an Arctic Cat dealer to schedule a free repair. The vehicles were sold nationwide from December 2013 through July 2014 for about $11,400 to $12,400. Learn more: CPSC.gov

Comment: This UTV recall is a little larger than the usual UTV recalls we see which often involve up to 3,000 to 4,000 vehicles. The Wildcat Trail UTVs are more narrow than typical UTVs to access trails that in the past were only accessible by ATVs. Earlier this year Arctic Cat recalled some Prowler 500 HDX vehicles but had not recalled any UTVs for several years before then.

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