LSVs Popular In China

Posted on July 29, 2014 by Marc Cesare

A Chinese low-speed vehicle.

A recent article discusses the surprising large size of the low-speed electric vehicle market in China. With over 200,000 LSVs produced there in 2013, it dwarfs the nearly 15,000 sold in the US. Some interesting characteristics of the market include, according to the article, a complete lack of regulation. Not surprisingly, hand in hand with this is a lack of safety features on the vehicles. On a more positive note, a host of component manufacturers and innovative low cost manufacturing processes have also cropped up to support this market and enabled many manufacturers to enter the fray.

A common design for a Chinese LSV is four doors with one seat in the front and two side-by-side in the back. The seating room would be considered small by Western standards. Chinese LSVs typically use lead-acid batteries and are powered by 1.5-kW to 4-kW DC motors with a top speed of around 38 miles per hour and costs range from $2,000 to $12,000. They are particularly popular in rural areas. Learn more: Green.autoblog.com

Comment: As the article points out, the small size of the US LSV market makes it a less appealing export market to Chinese manufacturers with so much opportunity at their doorstep. A friend of mine tried for several years to import a quality LSV from China that met the US safety standards and consumer requirements. He had a difficult time finding any company willing to spend the money to do the testing and meet the standards for a relatively small market opportunity. At the time, the quality of many of the vehicles he looked at was also not going to meet the needs of the US market.

Another difference in the markets is that the US market has become more of a commercial/institutional market. In the US, many of the consumer markets where LSVs would be useful are already served by golf cars and from what I’ve seen the trend among municipalities has been to allow golf cars on public streets rather than restrict them. This negates to a large degree the necessity of having purposely built LSV compliant vehicles. The commercial/institutional buyers however are looking for vehicles with those added safety features and official designation as an LSV.

In general, international markets offer greater potential for small electric vehicles than the US. From other developing countries in Asia to urban environments in Europe, from both a regulatory and market demand perspective, these markets are more conducive to creating a substantial market for these vehicles.

GEM Launches New Vehicles For 2015 Model Year

Posted on July 28, 2014 by Marc Cesare

The new 2015 GEM eM1400 LSV

The new GEM M1400, a gas versions of the GEM eM1400, is new for model year 2015.

Polaris’s GEM brand announced their model year 2015 lineup including LSV and gas variants of the eM 1400 utility vehicle introduced last year. Besides these additions, the lineup includes e2, e6, e4, and light-utility vehicles eL, eS, eL XD, eM1400. They can haul up to 1,450 pounds of payload and can seat two to six passengers.

The M1400 gas powered vehicle features a 31 hp, ProStar electronic fuel injected engine and a cargo payload of 1,100 lbs. The LSV version of the eM1400 is street legal and has a top speed of 35 mph. Both vehicles will begin shipping in October 2014 with an MSRP of $10,999 for the LSV version and $7,999 for the gas version. Learn more: Automotive-business-review.com

Comment: Polaris has made the commercial/institutional and small electric vehicle segments a strategic focus and continue to execute on that strategy similar to what they do in other markets – by frequently rolling-out new models to target specific segments or sub-segments. I was surprised when they first launched the eM1400 and specifically mentioned customers looking for a non-LSV vehicle. While this may have been true for some of the market, from SVR’s research in the large college/university/institutional market, we knew that LSV compliant vehicles were in demand as they helped address buyers safety and liability concerns, regardless of whether or not the vehicles would be used on public roads. So it is not surprising that they have quickly followed with an LSV version.

The gas version is interesting from a branding point of view since, I assume, it is the beginning of an expansion of the GEM brand which has previously only been associated with electric vehicles. By developing gas vehicles under the GEM brand, Polaris can use the same distribution/marketing channel to meet the needs of commercial/institutional buyers that require both electric and gas vehicles. This should be more effective for them than trying to sell GEMs through one channel and gas powered Rangers through another channel to the same customer. The expanded branding also allows the company to extract more value from the GEM brand, which had stagnated for a number of years before being acquired by Polaris but had potential.

Polaris Reports Record Quarterly Results – Gains Market Share

Posted on July 23, 2014 by Marc Cesare

Beauty shot of the new Sportsman ACE from Polaris.

The Sportsman ACE, one of the many different vehicles that helped drive record quarterly performance for Polaris.

Polaris Industries reported record second quarter results with sales of $1.014 billion and net income of $96.9 million. Sales increased 20% from Q2 2013 and net income 21%. Key drivers were an increase of 15% in North American retail sales with strength in ORV and motorcycle products. Management also raised their full year guidance to a 16-18% increase revenue. Here are some highlights from the earnings call with a focus on small, task-oriented vehicles:

ORV sales increased 13% for the quarter to $701.5 million
Guidance for full year: up 11%-13%
Side-by-side sales up low teens % and outpaced the market
Polaris gained market share in side-by-sides and ATVS
Sportsman ACE is selling well and customer data to date indicates that it is reaching a new market segment
New ORV models will be announced shortly
Promotion environment for side-by-sides remains aggressive
Small Vehicle sales increased 29% to 43.5 million
Aixam Mega sales up over 40% in Q2
GEM and Goupil sales combined increased 6%
New products will be announced in the second half of the year
Small Vehicle sales guidance for the year: up 25%-30%
In the commercial segment Brutus sales are below expectations as the company tackles the B2B sales process but Bobcat and National Account sales did well.
International sales increased 29% in Q2 to $170.5 million driven, in part, by side-by-side sales in many regions

Learn more: Seekingalpha.com (Earnings call transcript)

Comment: Polaris continues to operate on nearly all cylinders and will be shortly rolling out new products. Their only weakness appears to be in the commercial segment. It is telling that Bobcat and national accounts did well in the quarter but the Brutus retail sales, while improving, remained below expectations. This points to the continuing mismatch between the majority of Polaris’s distribution network and the commercial customer the Brutus is targeting. Most of their current dealers are accustomed to a different consumer-oriented sales process. Management is likely to pursue additional marketing partnerships in this segment to bolster commercial sales while trying to assist, train and bring more of their traditional dealers up to speed in this segment. But this is nitpicking, the company continues to roll in competitive markets and is even exceedng high expectations.

Kawasaki Announces 2015 Mule PRO-FXT With Seating For Six…Or Three

Posted on July 17, 2014 by Marc Cesare

The new Kawasaki Mule PRO-FXT with seating configured for three with additional room for cargo.

The Mule PRO-FXT Camo model configured for six passengers.

The 2015 Kawasaki Mule PRO-FXT’s tilt cargo bed in action.

Kawasaki recently announced their newest Mule utility vehicle, the PRO-FXT which can seat six or three with an additional 20″ of cargo space using their configurable Trans Cab seating. The Mule PRO-FXT comes in four models: non-electronic power steering version, EPS, EPS LE and Camo. The vehicle lineup features a new 812cc three-cylinder fuel injected engine which produces 48 ft-lbs of torque and is matched with a continuously variable transmission. Other key features include:

Electrically selectable 2WD/4WD system that has a dual-mode rear differential
CVT with engine braking
1,000 lb hauling capacity
2,000 lb towing capacity
Digital fuel injection
10.2 inches of ground clearance and 8.7 inches of suspension travel
Short wheelbase and overall length
LCD instrument cluster
Four automotive style doors
Three-point harnesses for each passenger
High output alternator and multiple 12 volt outlets
Tilt-steering on most models

The MSRPs for the product lineup are $12,999 for the base model, $13,999 for the EPS, and $15,999 for the EPS LE and the Camo versions. Learn more: UTVunderground.com

Comment: While a lot of attention has been paid to the competition in the sport UTV segment, the work UTV segment is heating up as well. This is the second 2015 model year vehicle to feature six passenger seating, the other being the Yamaha Viking VI. We are also seeing a continued emphasis on versatility, more horsepower, auxiliary power and an extensive lineup of accessories. While the sport UTV segment maybe the glamour segment, the work UTV segment offers some growth opportunities for companies as more potential customers realize the versatility and productivity of work UTVs. If they make sense from a cost benefit point of view than the market will respond. It also helps that one of the booming areas of the economy is the energy sector which requires off-road access and the ability to move work crews around. Kawasaki, Yamaha and Polaris are all making pointed efforts to expand their presence in the work utility segment.

Flex L3 Electric Utility Truck Available In UK

Posted on July 9, 2014 by Marc Cesare

The Flex L3 electric truck produced by Ligier is now available in the UK.

ePower Trucks will be the UK distributor for Ligier’s Flex L3 electric utility truck. Ligier is a French manufacturer. Powered by lead gel batteries, the street legal Flex L3 has a top speed of 25 mph and a range of 35 mph. The target applications for the vehicle, which can come in a flat bed, cage, box body or tipper configuration, are urban delivery and estate management. The payload capacity is up to 400 kg. The Flex L3 is priced at 13,500 pounds and is available in white, red or gray. Learn more: Transportengineer.org

Comment: The urban delivery market application is a good niche market for electric vehicles especially for the delivery of goods that are neither too large or heavy. This type of application requires slower speeds and less range so more expensive lithium-based battery packs and more powerful electric powertrains are not necessary. This type of application is more prevalent in Europe and Asia. For similar reasons, light-duty maintenance applications on college or corporate campuses or city parks are also a good fit for this type of vehicle.

Polaris Launches Ranger Crew With Integrated HIPPO Multipower System

Posted on July 8, 2014 by Marc Cesare

Polaris Ranger with HIPPO Multipower System at a recent trade show.

Polaris recently launched their Ranger Crew Diesel utility vehicle with an integrated HIPPO™ Multipower™ System (MPS) from the Mobile Hydraulic Equipment Company. The MPS allows users to power hydraulic, pneumatic, electric and welding equipment directly from the vehicle’s diesel engine, in this case a 24 hp engine. Polaris points to rail, municipal, construction, oil and gas, rental, utilities and mining industries as well as the military as potential markets for the vehicle. The integrated HIPPO 1041CP Multipower System has one hydraulic tool circuit, two quick disconnect pneumatic fittings, two 120 volt electric outlets at 20 amps and one welding console with quick disconnects.The RANGER with HIPPO MPS is currently available for sale through authorized dealers, Polaris Fleet Sales and defense channels. Learn more: Polaris.com

Comment: This vehicle is a continuation of Polaris’ strong push In the last several years into the commercial, government and military utility vehicle segment. With a sales process and longer selling cycle than what their typical dealers are accustomed to, management has not been satisfied with their rate of progress in the commercial and government segments. To that end they have developed partnerships with companies and brands with a strong presence and marketing experience in the commercial markets such as Bobcat, Ariens and now Mobile Hydraulic Equipment Company.

Polaris Adds Horsepower To The 2015 RZR XP 1000 and XP 4 1000

Posted on July 8, 2014 by Marc Cesare

The new RZR XP 1000 is the fastest-selling side-by-side in Polaris history.

The 2014 RZR XP 1000 shown here will feature additional horsepower in model year 2015.

Polaris recently introduced the 2015 RZR XP 1000 and XP 4 1000 which feature a 110 horsepower high output engine compared to 107 hp in the 2014 model. The 2015 models feature additional changes related to the boost in horsepower including:

New engine calibration with high-output cams, stiffer valve springs and a higher compression ratio of 11:1.
Revised exhaust system, incorporating closed loop control and catalyst technology improves emissions and efficiency.
New direct flow intake covers, new belt and a new clutch cover with more ducting providing two times more airflow directly to the clutches

The RZR XP 1000 will be available in Havasu Red Pearl, Voodoo Blue and White Lightning, and the RZR XP 4 1000 in Havasu Red Pearl and Voodoo Blue. All units feature standard Electronic Power Steering (EPS) and will be available in dealerships starting in July. Learn more: Polaris.com

Comment: The competition in the side by side market remains strong. In the high performance sport segment horsepower is one of the areas where competitors try to outdo each other. Suspension travel and handling are not far behind. I expect to see some new models or updates from Arctic Cat and/or Can Am in this segment.

Cenntro Motor To Produce Electric Utility Vehicles At Nevada Facility

Posted on June 26, 2014 by Marc Cesare

Cenntro Motors Kombi EV electric utility vehicles to be produced in Nevada.

Cenntro Motor plans to begin production of 1,650 electric vehicles at a Sparks, NV facility by August or September of this year. The $20.1 million, 150,000 square foot facility will also serve as the company’s headquarters. The facility will employ approximately 100 people and training grants along with tax deferrals were part of a $1.2 million incentive package to attract the company.

Cenntro Motors designs and builds lightweight electric commercial and passenger vehicles and their first vehicle is the Kombi EV designed for maintenance, delivery and light cargo transport. The vehicle currently comes in two configurations, the Green Space Version with a cargo bed and the City Version with a van box. Both vehicles are 2WD and use a 10 Stator KLD DC motor with max power of 12.5 kW. The vehicle’s KLD Energy Technologies oneDRIVE™ propulsion system uses a 48V system with a 6.8kW KLD Li-ion battery pack. Other key features include 800 payload capacity, 4-wheel hydraulic disk brakes, a range of 50 miles and top speeds of 31 mph for the Green Space and 25 mph for the City.

Cenntro Motors also recently acquired SITL-Brandt Motors located in Lyon, France, which will be the headquarters for their European operations. The acquisition was valued at $50 million and management plans to invest an additional $20 million. With the acquisition Cenntro’s lineup in Europe will include an all-electric CITELEC commercial truck, a two-person quadracycle and electric scooters. Learn more: Reviewjournal.com and Cenntromotors.com

Comment: The commercial/government market for small electric vehicles is attracting more attention as many companies believe this is where the growth is. From colleges and universities to municipalities and commercial entities organizations are finding these vehicles to be green, safe and cost-effective for applications that do not require traditional passenger vehicles or pick-up trucks. It continues to represent a growth segment for the STOV industry. It is also an international market with arguably better opportunities in European and Asian markets where smaller vehicles are more accepted, prevalent and have been used effectively for many years.

Environmental Groups Seeking To Limit UTV Trail Access In New York

Posted on June 24, 2014 by Marc Cesare

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

The 50-inch wide Wildcat Trail XT from Arctic Cat was specifically designed to access narrower trails.

A coalition of environmental groups are opposing a proposed New York State bill that would allow heavier off-road vehicles, such as UTVs, access to public recreation trails. The bill would increase the weight limit of allowable vehicles from 1,000 lbs to 1,500 lbs, essentially expanding the types of allowable vehicles from ATVs to include some UTVs as well. Groups like the Adirondack Council believe the UTVs are too fast, big and destructive to be allowed on the trails, causing more erosion, as well as water and air pollution. They are not looking to restrict use on private lands or on public lands by people with disabilities. Learn more: Northcountrypublicradio.org

Update: According to Protect The Adirondacks, another group that opposed the legislation, the bill was recently defeated in the state assembly.

Comment: It is likely that more of these conflicts between recreational UTV riders and environmental groups will be occurring in the future. The UTV market continues to grow and in the last couple of years more UTV models that are only 50 inches wide have come onto the market. They are specifically designed to provide access to ATV trails that are typically too narrow or in some areas feature numerous narrow gates for which traditional UTVs are too wide. These type of trail systems are prevalent in the Northeast.

Good & Bad Trends For UTVs

Posted on June 11, 2014 by Marc Cesare

Recent news articles point to a mix of good and bad trends for the utility vehicle market. The good is that UTVs are becoming increasingly popular for a variety of work applications as they increase worksite efficiency. As an article in Rental Management Magazine points out, an increasing number of equipment rental bids for construction, utility, oil and gas, and event planning contracts require a line for utility vehicles. This trend is one of the reasons growth in the UTV market has outpaced the economy as a whole. Buyers have been willing to spend money on the vehicles because it makes economic sense for their operations.

The driving force is increased productivity and efficiency as users are able to more easily move around equipment and people. UTVs have increased their capabilities and versatility with more hauling and towing capacity, crew versions and increasingly the ability to add work attachments. In addition, there is a range of fuel options now available for UTVs with diesel, gas with fuel injection, electric and hybrid powertrains. The trend has been increasing horsepower across all of these powertrains. Electrics have been migrating to 72 volt AC motors which give them more capabilities and expand their potential work applications as some users institute “green” initiatives.

The rental business is an important indicator since it caters to such a wide variety of market segments, exposes customers to new equipment and provides them an opportunity to try out the equipment. The rental business does offer special challenges though because of the variety of work applications. One being the need to correctly match the UTV to the end use depending on key factors such as off-road/on-road use, terrain, people moving, hauling or towing requirements, weather conditions and more. For equipment rental companies this means carrying a range of UTVs to match their regional market needs. Another issue is safety since users may be unfamiliar with UTVs or a particular brand of UTV. A variety of safety options may be available from side netting, three-point seat belts and ROPS to reverse alarms, dynamic braking and light packages and online training/safety material. Different types of speed limiting technology is also available depending on the vehicle brand.

If the UTV rental business is a positive trend, the negative trend is an increase in UTV thefts. A recent article from The State in South Carolina highlights this trend. We have also been tracking this through other local newspaper articles from throughout the country. One of the reasons for the rise in thefts is the increasing popularity of UTVs and thus creating more of a market for stolen vehicles. Some simple actions proposed by law enforcement to reduce thefts include:

Do not leave items near or close to the highway.
Make sure serial numbers are recorded and stored in a safe place so that the items may be placed into the national computer system if stolen.
Please don’t leave any of these items in areas that are easily accessible or near the roadway.
If someone approaches you about selling one of these items at greatly reduced cost, please report that to law enforcement.

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Information on the small, task-oriented vehicle market