PowerSports Business

February 17, 2014

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FOCUS PSB FOCUS PSB Utility UTV www.PowersportsBusiness.com Powersports Business • February 17, 2014 • 23 22 • February 17, 2014 • Powersports Business www.PowersportsBusiness.com larger and capable of speeds exceeding 70 mph, these models feature sport styling with a limited cargo area, independent rear suspension, 2- and 4-passenger seating with bucket seats, superior handling and suspension and 4WD. Examples include the Arctic Cat Wildcat X, Can-Am Mav- erick X 1000R and Polaris RZR XP 1000. ELECTRIC VEHICLES Not LSV/NEV certified, these units are speed- governed at 25 mph and under and offer a large cargo area, 2- and 4-passenger seating, and can be either 2WD or 4WD. They are popular at golf courses, in industrial plants and See UTV Marketplace, Page 23 warehouses, and with hunters. Examples include Bad Boy Buggies' Recoil iS, the Club Car Carryall, E-Z-Go ST and Toro MDE. Consumer applications include sales mostly to recreational riders, farmers, ranch- ers, hunters and large-acre estates/hobby farms, etc. Commercial applications include sales mostly to municipalities, golf courses and resorts, government agencies, contrac- tors, warehouse use, colleges and universities, sports fields, parks and rec, nurseries, cemeter- ies, campgrounds, etc. So how do those classifications combine in the market? According to PPM analysis, of the roughly 320,000 UTVs retailed in North Amer- ica in 2012, models that went toward consumer use accounted for around 85 percent of sales, and models for commercial applications were responsible for roughly 15 percent of the total. However, of the consumer uses tallied in PPM's research, Sport Recreational Vehicles and Super Sport Vehicles accounted for only 38 percent of vehicles, with the remainder of the sub-set made up mostly of the Utility Crossover Vehicles and Recreational Utility Vehicles. But the UTV market hasn't always looked this way. Going back a decade, the scene appeared much different. Between 2000 and 2002, as the North American UTV market struggled to maintain itself over 100,000 units in the aftermath of the 2000 recession, the market was split 60 percent commercial vs. 40 percent con- sumer — of course, that was before the intro- duction in 2003 of the game-changing Yamaha Rhino, a vehicle that offered recreational fun in a utility-capable package. PPM says its preliminary estimates suggest UTV sales in North America grew approxi- mately 10 percent during 2013. PSB UTV MARKETPLACE CONTINUED FROM PAGE 22 to their compact dimensions that work well on the area's tight mountain trails. "The seats are actually built into the bed, so that makes it even more something that a person wants in this area, because they like to hunt here, they like to go up in the mountains, and here some of those vehicles are just too wide to get on some of the trails," she said. "The Pioneer is a really good option because it's not too long, and it's not too wide." YAMAHA VIKING The Viking FI 4x4 EPS starts at $12,599 and comes with a 686cc single-cylinder four-stroke engine, standard power steering, independent suspension and a 1,500-pound towing capacity. One sales manager, who wished to reserve his name, at a multi-line dealership in Colorado, said off-road sales in general have been very good, with the notable exception of the Yamaha Viking that has been approximately 60 percent below expected sales levels. "We sold one right when it came out, and there was some excitement about it," he said. "The biggest thing is when you go ride it, it's loud and it vibrates substantially more than a twin-cylinder Polaris. That's what consumers are choosing to go with, Polaris, even if they're Yamaha guys." While he's frustrated with the sales thus far, he's not personally disappointed in the vehicle and feels some stronger marketing may be able to generate some more excite- ment in the vehicle. "It's only been out for about six months, so sometimes new models take a little while to catch on," he said. "I think it has more positive than negatives for sure … the three individual seats are very nice, the ground clearance, there are a lot of nice features with it, no question. It's a big improvement over their last UTV, the Rhino." Back at North Dakota's Mondak Motors- ports, Funge was dramatically more positive on his dealerships brisk Viking sales. "I think they knocked it out of the park," he said. "I'm very impressed with them." With his dealership moving most off-road units at a quick pace, Funge added that he is frustrated Yamaha still hasn't come out with a dedicated sport side-by-side after suggesting it in the past. In Pennsylvania, a sales manager at a multi- line dealership said off-road sales in general have been difficult. He cited the cost of vehi- cles and economic difficulty as the main cul- prits, and estimates that Viking sales have been approximately half of what the Rhino was pre- viously doing at his facility. He added that the vehicle is too wide for the tight trails in his area, but suspects it is doing well in other parts of the country with wider trails. So far his dealership has sold eight Vikings, primarily to homeowners looking for a combi- nation of work and play features. "It's the wrong machine for this area," he said. "They want a sport side-by-side, all the customers I talk to." Down in Phoenix, sales manager Nick Haider at RideNow Powersports has seen off- road consumers shifting to UTVs, as ATVs sales have gradually slowed and local track closings have impacted dirt bike sales. His dealership's best UTV sellers have been 1,000cc Polaris UTVs — both two- and four- seaters, sport and utility — the Ranger 900 and the Can-Am Maverick. Anything with power steering, he said, has been particularly appeal- ing to his customers. While not one of his top-selling UTV mod- els, the Viking has been popular, and he is particularly excited about the just-released Special Edition Tactical Black Viking EPS model that is priced at $1,150 more than the base model. "The consumers that want the Viking want power steering, they like the big cab, the three seats," he said. "It's been very popular." So far, the vehicle has appealed to hunters, general trail riders and riders over 40 look- ing to handle occasional work duties on top of recreation. PSB YEAR 2 CONTINUED FROM PAGE 19 Defining the UTV marketplace UTVs that offer recreational fun in a utility-capable package like the 2014 Honda Pioneer 700 are responsible for the majority of sales in North America. P14x23-PSB3-Focus.indd 23 2/5/14 10:28 AM

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