Polaris Reveals 2019 Model Year Side-by-Sides

Polaris Industries revealed their 2019 model year side-by-side lineup last week with improvements across a host models. In the Ranger product line Ride Command technology will now be available for select Ranger XP 1000 models as a factory-installed package. The Range XP 1000 and Ranger Crew XP 1000 models now include a 20th anniversary edition and the new High Lifter Edition.

2019 model year RZRs feature aggressive styling and performance upgrades across the product lineup. Ride Command will be available in all RZR XP 1000 colors and the RZR XP 1000 Dynamix vehicles. The trail-ready RZR S4 1000 is now powered by a 100 hp engine.

The General lineup has been updated with performance and technology upgrades, as well as new colors and graphics. The following are more specific features for select models.

2019 Polaris Ranger XP 1000 EPS High Lifter Edition

The 2019 model year Polaris Ranger XP 1000 EPS High Lifter Edition with redesigned half doors and improved driveline strength.

2019 Ranger XP 1000 EPS High Lifter Edition – $19,999 MSRP                                    2019 RANGER CREW XP 1000 EPS High Lifter Edition – 21,499 MSRP

  • Redesigned factory-installed half doors with new one-inch water drains
  • 82 hp engine
  • 11″ of suspension travel
  • 20% increase in overall driveline strength
  • New geared reverse transmission
  • 28″ Outlaw tires
  • 13.5″ of ground clearance
  • Crew version has 6-passenger capacity

2019 Ranger XP 1000 EPS RIDE COMMAND – $17,999 MSRP                                    2019 Ranger XP 1000 EPS NorthStar Edition RIDE COMMAND – $25,999 MSRP

  • Ride Command technology is now available as a factory-installed package
  • Seven-inch glove-touch display features built-in navigation and front and rear cameras.
  • System provides vehicle diagnostics, allows smartphone connectivity and factory-installed in-dash speakers.
  • Topographical map allows consumers to better navigate trail overlays and drop waypoints to remember key locations
  • Interactive interface gives every type of rider the freedom to stay connected while hunting, working on their ranch, or trail riding.

2019 Ranger XP 1000 EPS and Ranger XP 1000 EPS NorthStar Edition models

  • Available in four new color options including Steel Blue, Pearl White, Magnetic Gray and Polaris Pursuit® Camo.
Polaris 2019 Ranger XP 1000 EPS 20th anniversary

The 2019 Ranger XP 1000 EPS 20th Anniversary edition with two-tone maroon and tan colors and embroidered seats.

2019 Ranger XP1000 EPS 20th Anniversary Limited Edition – $16,799 MSRP            2019 Ranger CREW XP 1000 EPS 20th Anniversary Limited Edition – $17,799

  • Two-tone maroon and tan color option
  • Custom embroidered seats
  • Limited production quantities
Polaris 2019 RZR S4 1000 EPS

The 2019 model year RZR S4 1000 EPS now features 100 hp.

Polaris 2019 RZR XP 1000

The 2019 RZR XP 1000 has new styling and LED lighting.

2019 RZR Xtreme Performance Lineup – Starting at $17,999 MSRP

  • Styling features a more aggressive cut with a chiseled muscular stance
  • LED accent lights
  • Brand-new LED headlights
  • Premium digital instrumentation
  • More storage
  • DYNAMIX active suspension and Ride Command technology now available on RZR XP 1000 models
  • Horsepower boost to 100 hp for the 2019 RZR S4 1000

2019 General – Starting at $16,299 MSRP

  • New colors and graphics
  • Factory-installed bronze wheels on the Ride Command edition

Learn more:  Polaris.com

Polaris Industries Reports Q2 2018 Results

2019 Polaris Ranger Crew XP 1000 EPS

New models like the 2019 Polaris Ranger Crew XP 1000 EPS helped drive side-by-side revenue for the quarter.

Polaris Industries reported their financial results for the second quarter of 2018. Second quarter 2018 revenue increased 10% year over year to $1.503 billion with the ORV/Snowmobile segment jumping 17% to $993 million and off-road vehicles, excluding PG&A, increased 19%. Some of the gains in ORV were because of the need to boost dealer inventory levels to match retail demand.

Earnings Call Highlights

The following are highlights from the earnings call related to the small, task-oriented vehicle market.

  • The powersports market in North America is essentially flat to up slightly with Polaris ORV flat
  • ORV retail is growing in every region of the US
  • Ag markets have not slowed down at all at this point
  • ORV/Snowmobile segment sales were up 17% in Q2
  • Improved ORV demand for side-by-sides worldwide, and availability and sale of new models accelerated during the quarter helped drive sales
  • Polaris side-by-side North American retail sales up mid-single digits driven by new products and improved oil/gas and agriculture markets
  • Average selling prices for ORV increased 3% and promotional spending per unit decreased
  • Polaris gained market share in side-by-sides and ATV for the quarter
  • Production costs are increasing due to higher logistical and commodity costs
  • ORV helped drive international growth, particularly in Europe
  • Global Adjacent Markets sales increased 17% in the second quarter to $113 million, due to growth in Commercial, Government, and Defense businesses

Guidance for Full Year 2018

  • Management increased guidance for the Global Adjacents and ORV businesses with Global Adjacents expected to be up low-double digits % for the year and ORV/Snowmobiles up high-single digits %
  • ORV sales are expected to be up high single-digits percent from international results and pricing actions and slightly higher volumes

Learn more:  Seekingalpha.com (Earnings call transcript)

Does Future Mobility Include LSVs?

GEM has been the market leader in LSVs for many years.

The falling cost of batteries and rise of autonomous driving technology has launched a new stage in the development of mobility technologies. These advances may be bad news for LSVs. For decades small-task oriented vehicles, and in particular by golf cars, have dominated the EV market in terms of production volume. Long before Tesla, golf car manufacturers produced hundreds of thousands of electric golf cars annually. Primarily for these vehicles were for golf courses, but for personal transportation as well. In addition, the large volume of used electric golf cars coming off of golf courses each year were finding their way into the personal transportation and utility markets. In smaller volumes they produced electric powered burden carriers and general utility vehicles for use in enclosed spaces such as factories and warehouses.

Speed and pricing hurt LSV adoption

Federal regulations in the late nineties lead to the development of Low Speed Vehicles (LSVs), originally referred to as Neighborhood Electric Vehicles (NEVs). The LSV classification created the opportunity to move small EVs out of gated and golf communities and relatively confined driving environments and onto public roads in large numbers. Unfortunately, for LSV manufacturers, the widespread adoption of LSVs for personal transportation has never occurred. In theory, LSVs would be a good choice as a second vehicle. They are relatively inexpensive to purchase and operate and suitable for the short trips typical of many drivers. In practice, they are relatively expensive for their limited functionality, and to many they look like a glorified golf car.

With a 25 mph top speed, LSVs are too slow for real life driving where speeds are often 30-45 mph. Federal authorities, already concerned about LSV safety, are unwilling to compromise on safety requirements for higher speed Medium Speed Vehicles. The additional safety requirements for MSVs would make these vehicles relatively expensive compared to fully highway capable vehicles.

Pricing has always been an issue with LSVs, which typically cost around $10,000 on the low end. They find themselves competing against new, used and refurbished golf cars that can cost thousands of dollars less or comparably priced, but heavily customized golf cars. On the other end of the spectrum, the lowest priced highway capable vehicles available do not cost that much more and offer far greater functionality. As a result, the LSV market has never “taken off”. SVR’s research has shown that LSVs for personal use have only gained traction where local laws restrict the use of golf cars on public roads. The trend has been for local governments to allow more golf cars, modified golf cars and even UTVs on local roads.

Where LSV have found some success is on college and corporate campuses. In these environments the LSV safety features are worth the additional expense in the context of insurance and liability. The slower speed is another plus where administrators do not want employees speeding across pedestrian filled campus grounds. The utility LSV has proven to provide plenty of functionality and mobility in these confined environments at a reduced cost compared to pick-up trucks which they often replace. In addition, electric LSVs fit well into sustainability and green initiatives on these campuses.

Electric bikes and scooters offer an alternative

New battery and autonomous driving technologies are unlikely to change the fate of LSVs, and likely will make it worse. Batteries are becoming small enough, powerful enough and cheap enough to create new competitors to LSVs. Namely, a rash of electric bicycles and electric scooters have been entering the market. While costing thousands of dollars, electric bicycles have the potential to chip away at some of the LSV market. Have a short commute on local roads and don’t need to carry much with you. Why not use an electric bike? Need a quick way around urban areas and don’t want to worry about parking? How about an electric scooter.

There are electric bike and scooter sharing programs either already operating or in pilot programs in major cities. These options aren’t ideal in bad weather or for multiple passengers, but they can potentially reduce LSV usage. In fact, they may even provide competition to golf cars and Personal Transportation Vehicles (PTVs) within gated communities.

Autonomous vehicles take a new direction

May Mobility self-driving GEM

GEM configured by May Mobility for self-driving.

Similarly autonomous driving technology may very well reduce the potential footprint for LSVs. Google has used some LSVs for the testing of their autonomous driving technology.  You could argue from a standpoint of safety that the more controlled environment of gated communities could be a good entry point for the technology. But it appears the major players are starting with highway capable vehicles. There have been some instances of LSVs with the technology being tested for limited use scenarios such as shuttle runs. Currently, the relative expense of the autonomous driving technology compared to the cost of an LSV is likely too high. The economics favor installation on premium vehicles or rental/sharing fleets with the flexibility for high volume usage.

Nuro autonomous vehicle

This Fall Kroger will be using passengerless autonomous vehicles from startup Nuro to deliver groceries to customers.

Starship Technologies Delivery Robot

Starship Technologies is rolling out a robotic delivery service on college and corporate campuses this year.

Even in the commercial use of LSVs or their slightly faster cousins in Europe for tasks like urban delivery, autonomous driving technology may undercut the application of these vehicles. There are a number of startups developing autonomous delivery vehicles for operation on streets. However, they are passenger less or even smaller and slower for use on sidewalks. The last vestige for the LSV may remain the college or corporate campus, but even the autonomous shuttle could cut into some of that usage. We may be witnessing the highpoint for the use of LSVs right now.

Marc Cesare, Smallvehicleresource.com