New Florida Law Allows Conversion of LSVs to Golf Car Speeds

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A new Florida law went into effect on July 1, 2013 that allows owners of low-speed vehicles to mechanically convert their vehicles to normal golf car speeds of 20 mph, which lowers their insurance costs. Reportedly thousands of Florida residents are waiting to make the change. The conversion can save an owner between $500 to $800 in insurance costs since a typical golf car can be insured for only $100 compared to $600 to $900 for an LSV. They can also save on the annual LSV registration costs of about $50. The conversion costs about $40.  Learn more:  WUSFNews

Comment:  This law further blurs the line between golf cars and LSVs. While most of the time this hurts the LSV market by making golf cars a more viable substitute, this time the law should help the LSV market by significantly reducing LSV operating costs in a major market for the vehicles. With its many retirement communities geared to golf car or LSV use, Florida has more than 5,000 registered LSVs or golf cars modified to meet LSV requirements.

Polaris to Announce New RZR July 29th

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Polaris is set to unveil their new 2014 RZR on July 29th, the first day of the OEM’s dealer meeting. There is also a consumer contest with five RZR’s being given away connected with the unveil.  Learn more:  Powersportsbusiness.com

Comment:  It will be interesting to see what new features and/or capabilities the new RZR will have. Attractive growth and profit margins in the recreational segment of the side-by-side market has increased the competition between the various OEMs and driven improvements and innovations in horsepower, ground clearance, vehicle suspensions and other capabilities.

BRP Earnings Call Summary

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Can Am Maverick Side-by-Side

BRP, manufacturer of Can-Am products including Maverick and Commander UTVs, recently had an IPO and is now a publicly traded company.  They reported their first quarter earnings several weeks back and here are some of the highlights with a focus on UTV related information.

  • 12% growth in comparable revenue to Q1 fiscal year 2013, which was driven primarily by a 27% growth rate in year-round products, mainly coming from strong side-by-side revenues and increased roadster sales.
  • Double digit retail growth for combined Can-Am Recreational Side-by-Side and Spyder.
  • Deliveries of the new Maverick Side-by-Side vehicle began with in the first quarter very good sell-through at the dealership.
  • On the retail side, the US recreational side-by-side industry grew high single digits, while our North American side-by-side sales grew high double digit.
  • Reported revenues of C$804 million, an increase of 5.5% over the same period in fiscal ’13, representing a record level for the Company in the first quarter.
  • Have added 35 to 40 dealers in the South and Southwestern US as part of a plant to add 200 to 300 dealers in the same areas within the next four years.

Final Plan Issued for Imperial Sand Dunes Recreation Area

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Riders enjoying Imperial Sand Dunes Recreation Area with ATVs and UTVS

The Bureau of Land Management (BLM) has issued a final management plan for the Imperial Sand Dunes Recreation Area in California. The plan is good news for off-road riders as the plan will open up 50,000 acres for off-road use within the area. The Dunes are a popular off-road riding area that stretches some 40 miles with an average with of 5 miles.

The plan includes measures to provide recreation opportunities for thousands of visitors by making nearly 180,000 acres (about 84% of the planning area) available for off-highway vehicle (OHV) use, while protecting critical habitat for the threatened Peirson’s Milkvetch by closing the plant’s habitat in the recreation area (about 11,670 acres) to off-highway vehicle use. ….Per the court order, all injunctive relief, including the closures, will remain in effect for 90 days after the date the BLM signs and issues the Record of Decision. … Once the injunction is removed, the BLM will manage the area pursuant to the approved Recreation Area Management Plan.

Learn more:  Holtvilletribune.com

 Comment:  This is good news not only for off-road riders but dealers and manufacturers as well. The more off-road riding opportunities that are available the better it is for the industry as a whole, especially if they can balance recreation and environmental concerns. The West and Southwest US are a particular hot bed for off-road riding in sandy terrain.

Mixed Reviews for the Yamaha Viking

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Yamaha’s new Viking utility vehicle

The new 2014 Yamaha Viking UTV received both positive and negative reviews from a mix of dealers who saw the vehicle in person and consumers commenting online about the various features of the vehicle.  In general, dealers sound more positive about the vehicle and see it as a step forward as Yamaha moves on from their Rhino offering. For dealers they find the value of the vehicle appealing. The three person seating capacity and other features make for a vehicle that can crossover from recreation to hunting to work. The versatility also comes at a nice price point for dealers, $11,499, the same as the 2013 Rhino. The dealers also liked Yamaha’s plans to introduce a new model for each of the next five years. Consumers were hoping the vehicle would be powered by a new engine rather than the modified version of the Rhino engine that is being used. Learn more:  Powersportsbusiness.com

Comment:  Once the Viking actually starts being sold and used by consumers the real assessment of the vehicle will be made. Nonetheless, the new Viking from Yamaha and plans for new model introductions annually is another sign of increasing competitiveness in the growing UTV market. With the likes of Honda, Arctic Cat, John Deere and Can Am all adding new models or whole new product lines, consumers should be the real winners in the long run as the competition drives new feature innovation and value pricing.

Honda Starts Pioneer UTV Production in South Carolina

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Governor Nikki Haley helps Honda kick-off production of the new Honda Pioneer UTV

Honda held a big event at their South Carolina manufacturing facility to mark the start of production of their new 2014 Pioneer UTV. Governor Nikki Haley of South Carolina was in attendance. The company has added 65 jobs specifically for the new product line and will be investing a total of $27 million over the next few years. The company is also celebrating its 15th year of producing powersports products at the facility where ATVs and engines are also made.

The Pioneer lineup includes the 700 and 700-4 which features convertible seating. Both are a crossover type side-by-side for use in recreation and work applications. The vehicles replace the Big Red UTV and will be available starting in August and September at approximately 900 dealers nationwide compared to 500 for the Big Red.  Learn more:  Powersportsbusiness.com

Comment:  From my point of view the interesting part of this story is the significantly larger number of dealers that will be selling the Pioneer. I speculate that more Honda dealers are seeing the UTV market as a good growth opportunity that they want to take advantage of, and they believe the new offering from Honda will be appealing to their customers. I believe the Pioneer offers some innovations that differentiate it in the market more so than the Big Red model did.

Renault Offers Twizy Cargo for Commercial Use

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Renault’s Twizy Cargo for urban commercial use

France-based Renault is modifying their commuter vehicle, the Twizy Z.E., to be used as a small commercial vehicle for cargo transport. Whereas the Twizy Z.E. features two seats with the passenger behind the driver, the Twizy Cargo will be a one-seater with cargo space. Both are electric powered vehicles. With 6.53 cubic feet of cargo space and a 165 lb payload the vehicle is best used for small package delivery in urban environments. The top speed of the Twizy 45 Cargo is limited to 27 mph which means in some European countries a driver doesn’t need a license. The Twizy 80 Cargo has a top speed of 52 mph and requires a licensed driver.  Durability issues with the vehicle raise concerns about the ability of the vehicle to withstand more demanding commercial usage. Learn more:  Plugincars.com

Comment:  Europe and some other regions have relatively more relaxed vehicle regulations than the US when it comes to smaller vehicles such as the Twizy.  With their older cities and narrower streets, they arguably have a greater need for them as well. Thus, the market and regulatory bodies have responded with a variety of vehicles and vehicle classifications to meet the market needs. Europe will continue to be a more fertile ground than the US for these low speed vehicles in the foreseeable future unless US regulations change. This is one reason why Polaris in recent years has made acquisitions in the European market and sees potential for their GEM brand internationally.

Bill to Protect Off-Road Vehicle Use in Johnson Valley Progresses

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The US House of Representatives recently passed a bill that would create the Johnson Valley National Off-Highway Vehicle Recreation Area in California. The bill now moves to the Senate for their consideration. The Navy was attempting to take control of the area to expand the Marine Corps Air Ground Combat Center. If the bill passes the area will be designated specifically for recreational uses, including, but not limited to, OHV use, camping and hiking. Marine Corps activities would be allowed twice a year and couldn’t include any explosives that could be left behind. Learn more:  Americanmotorcyclist.com

Polaris Recalls 2011 Ranger RZR XP 900

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Polaris 2011 Ranger RZR XP being recalled, also comes in white.

Polaris is recalling approximately 4,500 Ranger RZR XP 900 utility vehicles because the firewall behind the driver and passenger seats can overheat and melt, posing a burn hazard to consumers. One incident of a person burning their fingers has been reported. The vehicles are either white or red and were sold between May 2012 and February 2013. Owners should stop using the vehicles and take them to a Polaris dealer for a free repair. The company is also contacting owners directly. Learn more:  CPSC.gov

Polaris Forging Ahead in the Indian Market

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Managing Director Pankaj Dubey of Polaris India

An Indian vehicle website recently posted an interview with Mr. Pankaj Dubey, Managing Director of Polaris India Pvt. Ltd. in which they discussed Polaris’s activities in the Indian market. Polaris entered the market in 2011 and have undertaken a number of efforts to grow the business. Here is a summary of the interview highlights and key marketing initiatives.

  • Participating in off-road racing events
  • Partnering with entrepreneurs to set up 16 Polaris Experience Zones in Indian cities to expose more people to off-roading
  • Their top five markets are Delhi, Mumbai, Bangalore, Chennai and Hyderabad
  • Efforts to market to police, parks departments, fire departments, etc are progressing
  • The product offerings in India include ATVs, UTVs, snowmobiles, and the Indian and Victory Motorcycles are likely to be added but not for at least a year
  • There are currently 14 Polaris dealerships with plans to reach 50 by year end 2016
  • The company is lobbying government agencies to allow more road access for ATVs and UTVs

Learn more:  Cardekho.com

Comment:  Increasing international sales has been a key strategic initiative for Polaris so it is not surprising that they are looking to expand aggressively in the next few years in India. In general foreign companies are eyeing the country’s growing middle class to power spending on goods and services. While some estimates put the middle class at about 300 million people, the upper range of this segment is where most of the spending is likely to come and that translates into about 50 million consumers. The middle class is expected to grow strongly in the coming decades. Learn more:  NYTimes.com