Issue link: https://read.dmtmag.com/i/499779
FOCUS PSB ATV 24 • May 4, 2015 • Powersports Business www.PowersportsBusiness.com Sales were flat in Q1, but hope abounds for the year BY LIZ KEENER MANAGING EDITOR For many dealers, Q1 ATV sales were flat, but the dealers polled in the Powersports Business/ RBC Capital Markets Q1 dealer survey haven't lost hope for the segment as the year continues. While 41 percent of dealers surveyed reported ATV sales were flat, and 36 percent said they were down in the first quarter of 2015, 46 percent expect sales to be up 5 percent or more over the next 12 months. Another 32 per- cent expect ATV sales to be flat in the next year, while 22 percent forecast lower ATV sales. As far as brands go, Honda performed best in the ATV segment for dealers, with 57 percent reporting a 5-percent or more sales increase from January to March. And 11 percent of those dealers said Honda ATV sales were up 30 per- cent or more. Yamaha also saw solid increases, with 44 percent of dealers reporting sales of increases of 5 percent or more. Forty-one per- cent of Can-Am dealers reported the same. Over the next 12 months, dealers expect those three brands and Polaris to provide the most growth. Honda ATVs again led the pack in this category, with 64 percent of dealers expect- ing sales increases of 5 percent or more over the next 12 months. For Can-Am, 52 percent of dealers expect an increase, and 46 percent of dealers expect both Yamaha and Polaris to boost sales 5 percent or more over the next year. ATV inventory is "about right" for 58 per- cent of dealers, while 39 percent said it's too high, and 3 percent said it's too low. ATV DEALER ANALYSIS To take a closer look at how ATV dealers specifically performed in Q1, PSB honed in on the four states and one Canadian province that had the most ATV dealers participating in the survey. For this analysis, we looked at ATV dealers in Iowa, Minnesota, New York, Wisconsin and Ontario. Of those in that group, 46 percent reported ATV sales were flat in the first quarter; 34 percent were down 5 percent or more, and 20 percent were up 5 percent or more. Though 42 percent said their Q1 business ATV dealers optimistic for next 12 months See Q1 ATV, Page 47 WHERE APPLICABLE, PLEASE PROVIDE YOUR YEAR-OVER-YEAR SALES GROWTH (NEW PRODUCTS ONLY, MEASURED IN UNITS) FOR THE FIRST CALENDAR QUARTER (JAN.-MARCH) OF 2015 WHERE APPLICABLE, WHAT TYPE OF GROWTH ARE YOU EXPECTING BY LINE OF BUSINESS (NEW PRODUCTS ONLY, MEASURED IN UNITS) OVER THE NEXT 12 MONTHS? 5% 3% 2% 4% 1% 11% 5% 2% 3% 3% 3% 1% 2% 2% 12% 8% 12% 4% 5% 14% 9% 23% 10% 13% 11% 21% 9% 12% 11% 26% 41% 38% 34% 32% 47% 50% 13% 10% 16% 11% 15% 9% 13% 10% 11% 7% 8% 13% 14% 13% 11% 5% 7% 8% 9% 2% 11% 9% 9% 5% 13% 3% 3% 5% 8% 4% 9% 2% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles -30% or worse -20% -10% -5% Flat +5% +10% +20% +30% or more 7% 4% 7% 3% 4% 10% 2% 24% 12% 22% 16% 15% 13% 24% 20% 29% 29% 29% 18% 20% 13% 27% 20% 24% 32% 26% 39% 37% 49% 27% 33% 4% 6% 4% 6% 5% 7% 7% 4% 5% 9% 3% 9% 8% 4% 2% 9% 2% 2% 1% 3% 3% 6% 2% 2% 5% 4% 4% 5% 7% 2% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles -30% or worse -20% -10% -5% Flat +5% +10% +20% +30% or more 3% 3% 3% 3% 1% 1% 2% Source: Powersports Business/RBC Capital Markets Q1 Dealer Survey