Honda Launches Talon 1000R/X Sport UTVs

Honda Talon 1000

The Talon 1000R and 1000X are Honda’s entry into the sport UTV segment.

Honda Talon 1000X

The Honda Talon 1000X is designed for tighter and rockier trails.

Honda Talon 1000R

The Honda Talon 1000R is for dunes and more wide open riding.

Honda Launches Talon Sport UTVs

Honda recently introduced the Talon 1000X and Talon 1000R UTVs. They are Honda’s long awaited entry into the sport UTV market. The Talon 1000X targets tighter wooded trails and rockier environments while the Talon 1000R aims for more wide-open dune riding. The models should be available in early 2019. I’ve seen sources mention January while others mentioned March. The first date might be production and the second could be arrival at the dealerships. In any case, the following specs are common to both versions.

  • 104-hp, 999cc, twin-cylinder, 4-stroke, SOHC engine
  • Six-speed dual clutch transmission
  • Power steering
  • Hill Start Assist
  • Hydraulic brakes with two 250mm discs;
  • Electronic Brakeforce Distribution (EBD) system
  • LED High/Low Headlights
  • About 1,500 lbs in weight
  • Tire sizes:  28x9x15; 28x11x15
  • Bolstered seats with harness pass throughs
  • Roof is standard

See the Talon in action:  Official Honda Talon 1000 video

Talon Model Differences

The two models have different widths, wheelbases, slightly different suspension systems with different suspension travel. a slight difference in suspension travel and different color options. The following specs are some of the key differences between the vehicles.

Talon 1000x Key Specs

  • Double-wishbone front suspension, Fox Podium 2.0 shocks with Quick Switch 3
  • 3 Link rear suspension with high-clearance trailing arm, Fox Podium 2.0 shocks with Quick Switch 3
  • Front/Rear suspension travel:  14.5″/15″
  • Red/Gray with red suspension accents
  • Gray/Blue with silver suspension accents
  • Width:  64.0
  • Wheelbase:  87.6

Talon 1000R Key Specs

  • Double-wishbone front suspension, Fox Podium 2.5 shocks with Quick Switch 3
  • 4+ Link trailing-arm rear suspension with toe link, Fox Podium 2.5 shocks with Quick Switch 3
  • Front/Rear suspension travel:  17.7″/20.1″
  • Red with red suspension accents
  • Green/Silver with silver suspension accents
  • Width:  68.4
  • Wheelbase:  92.7

Initial Reviews

The following are some initial reviews and analysis of the Talon from around the industry.

UTVonDemand

First Look Review (video). Provides fairly in-depth analysis of the engine and drive train and highlights many of the key features that the reviewer likes.

  • 999cc twin cylinder SOHC engine should provide good low-end torque
  • 270 degree firing order makes it run like a single cylinder
  • Based on Pioneer engine but bigger throttle bodies, bigger injectors, different heads and more flow
  • Claiming 104 hp but may have higher torque than other UTVs with more hp
  • Rubber mounted engine to dampen vibration
  • 3 Driving Modes:  Sport, Normal and Manual with paddle shifters
  • Hill Assist – Push dash button and it holds the vehicle from rolling back for 3 seconds
  • “Big deal” for this vehicle is the transmission has a dual high and low range so you can  go rock crawling without changing the gear set out
  • Claim extra strong driveshaft and axles
  • i-4WD system with electronic braking control to transfer power up front from a spinning wheel to the wheel with traction
  • 68.4 1000R  Front/rear wheel travel 17.7/20.1
  • 64″ 1000X Front/rear wheel travel 14.6/15.1- this may be a little short compared to competitors
  • Can use 30″ tires – 28″ are standard and custom designed by Maxxis
  • 15″ rims for bigger brakes
  • 1000X has 3 link system podium 2.0
  • 1000R has a 4 link for added strength and Podium 2.5;
  • More suspension tuning with 3 mode QS3 compression on both models
  • Power steering sport tuned for feedback and speed sensitive
  • Standard roof is designed with rain gutters and air vents for trailering backwards
  • Good seat sliders
  • Holders in doors and t-bar has nice latching system
  • Seats have pass throughs for harnesses
  • Pedals laid out for two or one foot driving and passenger has different places to place feet at speed or more relaxed driving
  • Cupholders with rubber for holding in drinks
  • Good cargo capacity and design
  • 1 yr warranty

Hondaprokevin

Provides specs in a nice layout and plenty of pictures

UTV Action

General overview of key specs and some commentary.

  • Probably will competitively priced around $20,000
  • Trail riders anywhere will like it but sand riders may wait for turbo option

UTV Driver

They provide a top ten feature list for the vehicles

  • Bolstered seats with harness pass throughs and harness bar
  • 15″ rims for larger brakes and 30″ tires
  • Sizable cargo bed with tie-downs
  • Dual Clutch six-speed transmission
  • Paddle shifting
  • FOX shocks
  • Hill Start Assist
  • 4-link trailing arm system on 1000R
  • Engine
  • Strong, durable build

SVR’s Take

Honda’s entry into the sport market has long been rumored so this isn’t much of a surprise. People may not have expected  two different models, but targeting the main sport sub-segments makes sense. The initial reactions are very positive and Honda’s reputation for quality and performance have riders expecting a good vehicle.

Increased Competition

Not surprisingly, Honda’s entry makes the sport end of the market now quite crowded. As a result, the competitive landscape raises the question of how Kawasaki will respond. They have been focusing more on the utility side of the market with their recent model introductions and have not made any really big changes with their more recreationally oriented Teryx product line. I would suspect they might come out with a new high-end sport vehicle in the next year and probably as a separate product line.

Lithium Battery Powered Golf Cars on the Rise

Trojan Trillium lithium battery

A lithium battery from Trojan’s new Trillium product line.

Trillium Lithium Battery Line from Trojan

Trojan Battery, a major player in the golf car and small task-oriented vehicle market, recently introduced their new Trillium line of Trojan Intelligent Lithium batteries. The line is targeting the aftermarket segment and is designed to be a replacement for existing lead acid batteries. According to Trojan the switch can be made “without the need for expertise in Li-ion technology or system integration.” Likewise OEMs can use the new battery line “…without significant investments in custom pack design and development.”

Sign of More Market Penetration

Trojan’s new product line is another indication of the growing use of lithium batteries in the golf car market. For a number of years there has been a lithium battery aftermarket that has largely consisted of smaller companies packaging together the various components. They either sell directly to golf car owners and/or through dealers who can install the components. However, this has been a niche market. In 2015 LiV Golf Cars tried to sell a lithium powered fleet golf car but were undercut by the big players too many times and retreated from that market. There are also smaller volume OEMs like GEM and luxury golf car maker Garia that offer lithium powered vehicles.

E-Z-GO Entry a Gamechanger

The most significant move towards lithium batteries came in 2017 when E-Z-GO, one of the major golf car manufacturers, launched their ELiTE line of lithium powered fleet golf cars. They also offer the option on some of their personal transportation vehicles. Financial reports show that E-Z-GO sold over 20,000 ELiTE vehicles in 2017. Samsung SDI is the lithium battery supplier for E-Z-GO. Rival golf car manufacturer Club Car has been linked to battery manufacturer LG Chem but has not yet introduced any lithium powered vehicles.

What Lies Ahead

The entry of a brand name such as Trojan should boost the aftermarket segment. Customers will likely have more trust in a Trojan backed product. In addition, if it is as easy to use as advertised, then this niche market should expand. The E-Z-GO product appears to have launched fairly successfully. Continued success will likely force Club Car and Yamaha to introduce their own lithium powered vehicles. Perhaps as soon as the upcoming PGA Show early in 2019. Once that happens, the move towards lithium batteries could accelerate quickly.

Marc Cesare, SVR

Road Use Regulation Roundup – November 2018

golf cart signRoad Use Regulation Summary

The following is a summary of some of the road use regulations for golf cars, LSVs, ATVs and UTVs that have been passed or are being considered at the state, county and city levels since June, 2018.

Some trends in this latest regulation roundup:

  • There is a fairly even split between ordinances that will allow more small vehicles on the roads and ordinances that will restrict use or clarify existing regulations.
  • California is allowing San Diego cities and the county to create a regional LSV plan..
  • Once again most of the legislative activity occurred in the Midwest and Southeast.
  • Florida municipalities were the most active followed by Minnesota, Wisconsin and Ohio.

Road Use Regulation by Location

Largo, FL – Largo officials denied a request from a mobile home community to allow the use of golf cars on nearby public roads. Officials cited safety concerns and potential cost issues as signs would be needed to notify other drivers that golf cars might be on the roads.

St. Johns County, FL – The county Board of Commissioners is replacing the existing golf car ordinance with one that would provide more clarity and uniformity in the county so the Sheriff’s Office can provide better enforcement.

Panama City Beach, FL – The Florida Highway Patrol reported a number of low seed vehicle and golf car accidents on Back Beach Road which is a state highway route. According to road use regulations the vehicles are not allowed on the route.

Holmes Beach, FL – The town commissioners are considering new golf car regulations that would require the addition of limited safety equipment or a full LSV set of accessories. In addition, they are considering keeping the vehicles off main thoroughfares.

Oconto, WI – The Oconto City Council revised an existing golf car ordinance to allow the use of utility vehicles on city streets. In response to citizens, the Council is considering an ordinance allowing ATVs and UTVs on some city streets.

Greendale, WI – The Greendale Village Board passed an ordinance to allow the use of low speed vehicles on certain city streets.

Austin, MN – The local police department is making an effort to educate citizens that UTVs and ATVs are not allowed on city streets.

St. Cloud, MN – Stearns County passed an ordinance to allow golf cars and LSVs on public roads. A similar ordinance had sunsetted in May.

Covington, OH – Operators of OGGO and Gest low speed vehicle transportation companies asked the city to amend their current low-speed vehicle ordinance to allow the company’s LSVs to operate on certain streets. The transportation is free for the riders. The services will be operating in Cincinnati and Newport as well and generate revenue from advertising.

Toledo, OH – The City Council is considering making permanent an ordinance that allows recreational and commercial use of golf cars in certain areas of the city. Currently a pilot program, the council is also considering expanding the areas of the city where the ordinance would apply.

Edmonton, KY – The Edmonton City Council approved an ordinance that would allow golf cars, ATVs, UTVs and mini-trucks on city streets.

Reedsville, WV – The City Council considering changes to the local vehicle ordinance listened to concerns of citizens regarding the use of UTVs and ATVs on town roads. Some citizens use their vehicles for practical purposes while others are “joy” riding on off-limit streets. The vehicles can be used on certain roads for a legitimate farm use. The changes would require drivers to show proof of farm use and have safety signage attached to the vehicle.

Woodstock, GA – The Woodstock City Council tabled a small vehicle ordinance in order to further discuss the definition of golf cars, ATVs, low-speed vehicles and personal transport vehicles, and the safety features required for each.

Poplarville, MS – The Board of Alderman is sending a resolution to the state legislature to allow the use of golf cars and other low speed vehicles on city streets.

California – Governor Brown signed a bill that gives cities in San Diego County and the county itself the authority to establish a LSV transportation plan.

South Carolina – A new law is about to go into effect designed to more easily allow police to enforce violations related to driving golf cars and other low speed vehicles. Violating any golf cart rule will be a misdemeanor punishable with a maximum fine of $100 or 30 days in jail, unless the offense is deemed to be a felony.

 

 

Arcimoto FUV: A Threat to PTVs?

Arcimoto Fun Utility Vehicle - FUV

The electric powered Arcimoto FUV (Fun Utility Vehicle) is just coming to market.

Oregon based Arcimoto is beginning to roll out their three-wheeled Fun Utility Vehicle (FUV). The combination of price point, size, electric powertrain and ability to travel public roads makes the Arcimoto FUV an intriguing alternative to golf cars, PTVs and LSVs.

Update – Arcimoto responded to a number of questions I sent them and I have added the information to the relevant sections below.

Arcimoto FUVs already on the Road

The first 10 FUV prototypes hit the road this past June. The company completed another 15 vehicles, referred to as their beta series, in September. These went to five customers and the remainder to rental locations. Vehicle rental franchising in tourist locations is a key part of Arcimoto’s marketing plan. As of the end of June the company has 2,800 reservations for the FUV.

Volume Production

Management expects to begin production and delivery of their A series of vehicles during this quarter. The A series marks the move to higher volume production. Plans call for a run rate of 200 vehicles/week or roughly 10,000/year by the end of 2019. The company has deliberately designed smaller sized production facilities that can produce approximately 10,000 vehicles per year.  A production facility costs approximately $10 million. This limits initial capital costs and creates a facility that can be profitable relatively quickly. Furthermore, the facility can be easily replicated in other parts of the country or the world.

Vehicle Features and Specs

The Arcimoto FUV is a three-wheeled vehicle powered by a 67 hp electric motor and a 12 or 20 kWh lithium-ion battery for a range of 70 or 130 miles and a top speed of 80 mph. As a three-wheeler, most states classify the FUV as a motorcycle or similar vehicle. Therefore, it does need the same  safety requirements as a full-sized, highway capable vehicle. The FUV can seat two passengers, one behind the other, and features regenerative braking, hydraulic brakes, a windshield with wiper and defrost, and heated seats and hand grips. Additional options include full HVAC, soft or hard shell doors, rear cargo box, bluetooth speakers and racks for golf clubs, bikes, surfboards, etc. The target price for the base model is $11,900 with a fully decked out model reaching the $19,000 range.

Arcimoto FUV Dimensions

Arcimoto FUV Dimensions

Versatility and Price Point Creates an Alternative to PTVs

The FUV is a versatile vehicle for gated communities. The vehicle can move from golf course, to community pathways to public roads. On public roads the FUV faces none of the restrictions of a golf car, PTV or LSV since it is classified as a motorcycle. Therefore, it can travel on higher speed roads and at night. The FUV can travel faster and farther as well. In terms of speed, the FUV may need a speed limiter option for use on golf courses or within communities depending on local regulations. According to Arcimoto, the vehicle does have the capability to cap speeds to meet specific needs.

The company is targeting a $12,000 base price. Therefore, the FUV is pricier but competitive with LSVs and fancier PTVs given the trade off between price and functionality. One of the reasons LSV sales never really took off in gated communities as expected is that the additional price premium did not offer a significant benefit over new or refurbished golf cars. LSVs are most successful where regulations greatly restrict the use of PTVs or golf cars on local roads. However, if anything, municipalities are becoming less restrictive regarding golf car use. Furthermore, in states like California, Massachusetts, Maryland, Arizona, and Illinois there are tax incentives available for the FUV. There is also the possibility that electric motorcycle or similar incentives could be brought back at the federal level. The company is lobbying to have the tax credits for motorcycles and three-wheeled vehicles brought back. This additional cost reduction could further boost the attractiveness of this alternative vehicle.

Arcimoto FUV Drawbacks

There are some potential drawbacks to the Arcimoto FUV in the gated community setting.

Higher Driving Speeds

Some communities may object to the vehicle’s higher speed capabilities. Some type of speed limiter could address this, or not, depending on the locality. In addition, given the older demographic in gated communities, some drivers may not feel safe driving at higher speeds on local roads. Nevertheless, driving up to 40 to 45 mph would include a large swath of vehicle usage inside and outside a gated community. In effect, the FUV could displace both PTV miles and a sizable chunk of driving performed with highway capable vehicles.

Seating Configuration

Seating configuration is another potential drawback. The seating in an FUV is one passenger behind the other rather than side by side. Some users may feel this reduces the social aspect while riding in the vehicle, particularly on a golf course.

Vehicle Storage

For seasonal usage by vacation home owners, there is often a need to store the vehicle for several months without any usage. This can be an issue or at least require some planning for the current battery powered vehicles. According to Battery University a lithium ion battery should be stored at 40% percent charge if being stored for an extended period. Arcimoto did not answer my question directly on this subject but expect to have a battery pack with a lifetime of “…8-10 years with normal vehicle usage, and still maintain more than 80% of their original charging capacity.” The pack replacement cost is expected to be under $2,500 inclusive of the residual value.

Marketing, Pricing and Local Regulations Critical to Success

The success of the Arcimoto FUV in displacing golf cars, PTVs and LSVs will depend on three key elements:  marketing, pricing and local regulations. The last may be the most important. If gated communities object to the FUV’s higher speed capabilities, and there is no technological fix, foreclosing the market. The pricing may be the easiest to address. If Arcimoto can hit their target price at volume production, even without tax incentives there is a compelling cost benefit story for the FUV.

The marketing element depends in part on where Arcimoto’s management wants to invest resources. The gated community market may be too small to target during the initial phases of the vehicle’s rollout. In addition, golf car dealers mainly serve this market. The company likely does not have relationships with this distribution channel. On the other hand, their rental franchise plan could overlap with these dealers as some are located in tourist oriented beach communities and have high PTV use. This angle could serve as an entry point to the market. In response to my questions Arcimoto stated that they put on a test ride event for the FUV at The Villages, a gated community in Florida, on November 12th. They also noted that the short drives and warm weather make resort communities a great market for the vehicle.

In a years time we will have a better idea whether the Arcimoto FUV has met with success, and whether it threatens the PTV market.

Marc Cesare, SVR

Tariff Questions Dominate Polaris Earnings Call

Polaris 2019 Ranger XP 1000 EPS 20th anniversary

The 2019 Ranger XP 1000 EPS 20th Anniversary edition helped drive sales despite tariff concerns.

Financial Results Overview

Tariff questions dominated the Polaris Industries earnings call to discuss their Q3 financial results for fiscal year 2018. The manufacturer of the RZR, Ranger and General side-by-sides reported adjusted revenue of $1,653 million, an increase of 12% from $1,480 million from third quarter 2017. Net income increased 21% from $98 million to $118 million. (Financial figures are compared to Q3 2017 unless noted)

STOV Segments Perform Solidly

Overall ORV/Snow segment revenue increased 3% from $1,007 million to $1,036 million. Lower snowmobile revenue was more than offset by a 12% increase in ORV revenue. ORV includes UTVs and ATVs. North American (NA) retail sales, driven by side-by-side sales, increased 1% in the quarter against a tough comparable. In comparison, management estimated that industry wide NA ORV sales improved low single digits for the quarter. Polaris side-by-side market share for the quarter remained the same.

The average selling price of ORVs overall increased 5%. Management reports that the initial launch of the 2019 model year was successful with good response from consumers and dealers. In particular, the new Ranger XP 1000 variants drove sales. Furthermore, the company’s inventory management system, RFM, is producing results with the best side-by-side delivery performance to date. In addition, lower promotional costs accompanied the stronger sales. Comments on individual markets indicated that the oil and gas customer segment improved while agriculture decreased some.

Global Adjacent Markets Gain

The Global Adjacent Markets (GAM) segment made solid gains as well. Sales increased 5% from $92 to $98 million. This segment includes vehicle sales to commercial, government and defense clients in addition to Aixam quadricycle sales in Europe. In addition, the GAM segment includes vehicles like Ranger and Brutus UTVs, military RZRs, GEM electric vehicles, Taylor-Dunn industrial vehicles and Goupil electric vehicles based in France. Management reported solid sales for  Goupil vehicles and strong orders from fire and police departments, and other government agencies.

ORV and GAM Drive International Growth

Sales to international markets jumped 10% with a strong showing from the ORV/Snow segment, up 9%, and the GAM segment, up 6%. Looking at sales by region, the Europe and Middle East drove overall international sales while Latin America increased only slightly and the Asia Pacific region decreased.

Full Year Guidance Improves

Polaris increased their guidance for the ORV/Snow segment. They now expect a low double digit increase in sales.The GAM segment should increase sales by low double digits, which is unchanged from previous guidance.

Tariff Impacts

Tariff impacts raised expenses by $8 million for the quarter and are expected to total $40 million for the year. The renegotiated NAFTA deal, the USMCA, is expected to have a neutral effect. However, the 301 tariffs, especially the upcoming List 3 tariffs could have more severe repercussions. Currently, the company is dealing with List 1 and List 2 tariff impacts. Polaris is at a disadvantage related to 301 List tariffs because their main competitors produce their vehicles in Mexico or assemble them in the US using Japanese parts. Therefore, these companies are not subject to the same tariffs.

Tariff Mitigation Plans

Management laid out a three pronged approach to mitigating the potential List 301 tariffs. First, they will try to negotiate with their suppliers to share some of the increased costs. Second, they may increase prices. Thirdly, they hope to lobby the current administration to obtain an exemption from the tariffs. Polaris argues that the tariffs are primarily hurting them, but they are the only US based manufacturer among the major players in the market. Furthermore, the company has been increasing their US based manufacturing. At this time, Polaris is not providing any specific quantitative guidance for tariff impacts for 2019.

Other Future Factors

For the powersports market in general, management expects that there will be a need to increase pricing to offset inflation, tariff impacts and increasing commodity and logistics costs. Furthermore, management stated, “As the industry leader, we’re not afraid to lead on price.”

The newly launched Factory Choice program, which gives the customers and dealers an opportunity to make differentiated vehicles from the factory and has been popular, gives Polaris optimism. The program should help drive sales in the future.

The dealer inventory profiles produced under the RFM program this year for side-by-sides significantly improved product availability. The increased availability bolstered sales, raising similar expectations moving forward.

Learn more:  Polaris Earnings Call Transcript (Seekingalpha.com)

SVR’s Take

This was another solid quarter for Polaris. The sales increases for side-by-sides were not gangbusters at first glance, but they are being compared to a really strong third quarter in 2017. The new 2019 vehicle lineup should drive sales more fully in the fourth quarter. The GAM segment is slowly growing into a significant business and could become a $500 billion business in about two years. On a cautionary note, the tariff impacts could slow progress for Polaris, especially in contrast to fast growing and Canadian based Can-Am. Increased pricing could potentially hurt sales, although as a premium brand Polaris can pass on some pricing. The other alternative is that they will take hit to their margins and generate less income.

 

 

Textron Off Road Struggles with Arctic Cat

Textron Off Road Wildcat XX

Textron Off Road’s Wildcat XX. Wildcat models were previously sold under the Arctic Cat brand.

Textron 2018 Q3 Earnings Results

Textron, Inc recently reported fiscal year 2018 third quarter earnings. They point to a struggling Arctic Cat brand which was acquired in early 2017. The company embedded the Arctic Cat brand under their new Textron Off Road brand in their Specialized Vehicle business, which is part of their Industrial segment. Specialized Vehicles also includes E-Z-GO golf cars, Cushman utility vehicles, towing tugs among other small, task-oriented vehicles. Management reported that poor Specialized Vehicle results hurt the Industrial segment that in turn reduced overall quarterly performance for the company.

Weak Performance but Faith in the Product

The Q&A part of the earnings call pointed to problems with products formerly sold under the Arctic Cat brand. CEO Scott Donnelly remarked that  “…the most fundamental challenge in the business is around particularly the dirt side, the consumer side of that business and that’s the area that where we need the most work”. Furthermore he noted that,

” Industrial, segment profit was breakeven primarily due to unfavorable operating performance in specialized vehicles. Specialized vehicles has undergone significant change over the past two years, as we have expanded the product portfolio. While we’ve seen increasing revenue in the segment, we haven’t seen the planned level of growth or do the operating levers necessary to support the expected returns.”

Nevertheless, management remained positive about future performance and confident of the products they are putting on the market. Donnelly further stated,

“We’ve got great feedback from customers, the performance side we don’t have a product problem I mean we have still gaps which again as I said we’re working on it as we go forward but I think the progress on what the product is and how the product is performing we’re very pleased with.”

The management expects better performance in the fourth quarter.

 

Sales Channel Issues

Additional management comments indicated other issues in the sales channel may be limiting performance. Management noted the need to manage the channel but that some dealers are doing very well. Overall the retail sell through did not meet expectations. Furthermore, management allocated more funds to product discount programs to reduce inventory. In addition, management expressed a desire to improve the sales tools that help customers get to the product.

Pricing Changes Reflect Sales Issues

The pricing changes across the Textron Off-Road vehicle lineup from 2018 to 2019 reflects the poorer than expected retail performance. Management reduced prices for nearly every model, slashing prices for the Wildcat side-by-sides the most. Wildcat price cuts ranged from $500 to $2,500 with most at least $1,000. In contrast, many other manufacturers maintained pricing or slightly increased pricing by around $200 in most cases.

Textron Earnings Call (Seekingalpha.com)

SVR’s Take:

If management likes the product and some dealers are doing well, it sounds like it may possibly be a dealer issue. Either dealers are in the wrong location or they are not performing well. The management’s comments about getting customers to the product raise additional potential issues.

“I think in general how we manage that channel is something that frankly we just haven’t done as well as we should have. And our sales tools and how easy we make it for perspective customers to figure our product, have access to the dealers, have a natural way to help customers move to our product is just something we didn’t do well.”

This could cover a lot of ground from advertising to website performance to in-store marketing material to how dealership personnel interact with customers from first contact to sale.

Marc Cesare, SVR

ODES Industries Launches 2019 UTV Lineup

ODES Industries 2019 Dominator X2 LT Zeus

The ODES Industries 2019 Dominator X2 LT Zeus features a touchscreen and LED lighting.

ODES Industries, self-described as a value UTV brand, recently announced their 2019 UTV lineup as they push for even more growth. According to company statements ODEs Industries has been growing for the last several years including a doubling of sales from 2016 to 2017. The 2019 lineup includes 10 models including the new XForce 2 and XForce 4 models which feature an enclosed cab. Probably, these models are aimed at heavy duty work applications in challenging weather environments. Prices range across the lineup from $9,795 up to $23,495.

ODES Industries Dominator Models

The Dominator line includes the following models:

  • The entry level Dominator X2 ST Model V1 – MSRP $9,795
  • The Dominator X2 ST Model V2 – MSRP $9,995 (Adds Doors, OTR Tires and Matte Black Wheels)
  • The premium level Dominator X2 LT Model V1 – MSRP $13,095
  • The top level Dominator X2 LT Zeus Model V1 – MSRP $14,795 (Adds 7″ Full Touchscreen LCD, Heated Seats)
ODES Industries 2019 Dominator X2 ST

The 2019 Dominator X2 ST

The Dominator X2 ST versions have the following features:

  • 800cc Engine
  • Digital Dash Display
  • Full Roof
  • Heavy Duty Front Bumper
  • Full LED Lighting
  • Electronic Dump Bed
  • Rearview Mirrors
  • Door Nets
  • Front 3,500 lbs Winch
  • Towing Hitch
  • 14″ Wheels
  • 26″ Tires
  • Lockable Storage Boxes

The Dominator X2 LT models have the following features:

  • 800cc Engine with 1000cc option for Zeus model
  • Long Travel – Vi-LOCK Suspension
  •  Digital Dash Display
  •  Full Windshield
  •  Full Roof
  •  32″ LED Light Bar
  •  Heavy Duty Front Bumper
  •  Heavy Duty Rear Bumper
  •  Full LED Lighting
  •  Electronic Dump Bed
  •  Rearview Mirrors
  •  Metal Frame Doors
  •  Front 3,500 lbs Winch
  •  Rear 3,500 lbs Winch
  •  Towing Hitch
  •  15″ Wheels
  •  29″ Tires
  •  Lockable Storage Boxes
  •  Radiator Guards
  •  A-Arm Guards
  •  Electronic Power Steering
Also, there are three Dominator X4 models which seat six as a result of stadium style seating. These versions are similar to the two-passenger lineup with a Dominator X4 ST V1($11,295), Dominator X4 LT Zeus V1 ($16,495) and Dominator X4 LT V1 ($14,795).

Sport Model

ODES Industries Ravager LT Zeus

A 1000cc engine powers the sporty Ravager LT Zeus from ODES Industries.

The two-passenger Ravager LT Zeus gives ODES Industries a pure sport model in the lineup. A 1000cc engine powers the Ravager which features a Two Brothers Racing Exhaust, 3M graphics kit, Two Brothers/Dyna Jet Juicebox kit, front winch, 29″ OTR Dirt Master tires and 15″ OTR Matte Black wheels. The company revamped the model for 2019. Ravager LT Zeus features include:

  • 7″ Touchscreen LCD Display
  •  Long Travel – Vi-LOCK Suspension
  •  Full Windshield / Roof
  •  32″ LED Light Bar
  •  Two Brothers Racing Exhaus
  •  Passenger Grab Bar
  •  Cargo Bed
  •  Rearview Mirrors
  •  Metal Frame Doors
  •  Front 3500lbs Winch
  •  Rear Towing Hitch
  •  15″ OTR Matte Black Wheels
  •  OTR Dirt Master 29″ Tires
  •  Radiator Guards
  •  A-Arm Guards
  •  Electronic Power Steering
  •  Heavy Duty Front Bumper
  •  3M Graphics Kit
  •  Powder Coated Bars – Yellow or Blue
  •  Two Brothers / Dyna Jet Juicebox Kit

New XForce Models Feature Cabs

ODEs Industries XForce 4

ODES Industries added a cab to their latest offering, the Force 4, which seats six.

Finally, rounding out the lineup are the two newest models from ODES Industries, the XForce 2 priced at $20,995  and the XForce 4 priced at $23,495. The X2 can seat up to three and the X4 up to six. Both feature AC/Heating systems, heated front seats, 10.6″ LCD touch screen and a 1000cc engine. Standard features include new mapping, GoPro integration, front and rear camera options, temperature controls, digital displays, Bluetooth connection for phone and text display and direct screen audio control. The latter feature makes it easier to just ride rather than play with electronics.

  • Integrated Media w/ Bluetooth and USB
  • Onboard GPS Nav with Trail Tracking
  • Front and Rear 640×480 Cameras
  • In Screen Go Pro Integration
  • ODES Ultra LCD Integrated Software
  • Aluminum RollcageAC and Heat System w/ Fan Control
  • Onboard Generator for Power Support
  • Front Glass Window w/ Wiper System
  • Front Window Adjustment, 3 Settings
  • Glass Door Windows w/ Electric up/down
  • Single Row LED Directional Light Bar
  • Full Enclosure System
  • Interior Lighting
  • 3 Captains Chair Seating
  • Heated Driver and Passenger Seats
  • Fold Down Center Seat for Console Storage
  • Folding Aluminum Dump Bed
  • 800LBS Capacity Electric Dump Bed
  • Exterior Rear Working Light
  • Oversized Side Mirrors
  • Aluminum A-Arm Guards
  • 16 Gallon Gas Tank
  • 4500LBS Wireless Winch w/ Nylon Rope
  • Reversible Front to Rear Winch Hitch w/ 2″ Ball
  • Winch wire quick disconnects
  • Snorkeled CVT Air Intake System
  • Exterior Panel Light and Bed Controls
  • LED Front and Rear Lights
  • OTR Dirt Master Tires 28×10-14
  • OTR Steel Wheels
  • Interstate Battery
  • Royal Purple Ice Coolant
  • Stage 4 Made in USA Kevlar CVT Belt
  • Double Wishbone Independent Suspension
  • Ground Clearance of 327mm
  • Aluminum Box 1076x1561x260

Learn more:  Odesindustries.com

SVR’s Take:

ODES Industries is another value brand that appears to be having success offering solid features at a reasonable price. These brands typically have a starting price point in the $9,000 to $10,000 range for their entry level UTV, although some start even lower with fewer features. According to ODES Industries website, they source parts from around the world and partially assemble vehicles in Asia. The remaining assembly appears to be in the US. The company moved assembly from California to Dallas, TX in 2016.

Can-Am Market Share Increases

2019 Can-Am Defender HD8

New models like the 2019 Can-Am Defender HD8 help increase Can-Am market share.

Can Am Defender Max

Can Am Defender Max

BRP Reports Strong Fiscal Q2 Earnings  

BRP Inc., manufacturer of Can-Am vehicles announced strong earnings for their fiscal second quarter (ending July 31, 2018) and improved Can-Am market share for their side-by-side business. Management reported an increase in revenue of 18% to $1,207 million from $1,023 million (In Canadian $) as well as increased profit margins.

Ahead of Strategic Plan 

Since implementing their strategic plan in 2015 Can-Am has steadily made inroads in the side-by-side market. Management set the goal of doubling Can-Am market share for the North American side-by-side market from approximately 10% to 20% by 2020. They are on track to reach that goal in 2019 instead of the original 2020 target year.

Recent Can-Am UTV Launches Source: Can-Am Presentation 9/10/2018

Product Development Drives Can-Am Market Share Success

The company drove this rapid growth by launching a host of new models to maintain competitiveness in existing market segments or to enter new segments. They typically launch new models every six months. The Defender lineup of UTVs is an example of entering new segments. The Defender not only attacked the work/utility segment where Can-Am needed a presence, but opened up under represented geographic markets. The company reports US side-by-side dealer network coverage increased over 50% over four years. They also added trail and sport models for the recreational segment while continuing to produce competitive high-end performance side-by-sides as well.

Can-Am Emerges as Main Polaris Competitor

While still far from the market share of market leader Polaris, Can-Am has established itself as the main competitor to Polaris, outpacing the likes of Yamaha, Honda, John Deere and others. This applies to not only to the side-by-side market but in other product segments as well including ATVs, 3-wheelers and snowmobiles. Both companies have also entered the boating market with recent acquisitions. (BRP; Polaris) Can-Am is one of the few side-by-side manufacturers that comes close to the breadth of models that Polaris offers across all the market sub-segments. Management’s intentions are to continue to build out their product lineup.

Earnings Call Highlights

The following are highlights from the earnings call and presentation. Unless noted comparisons are to the same quarter of the previous year.

  • Revenues were up in North America (NA) and all intl markets
  • NA retail sales for Seasonal and Year-round business segments increased 16%
  • All product segments are outgrowing respective industries
  • Year Round business which includes SxS, ATV and Spyder products increased by 26% from $440.4 to $554.0
  • NA side-by-side retail jumped low 30% vs. low teen % for industry for the quarter
  • NA 2018 SSV industry up high single digits percent for recently ended model year while Can-Am jumped mid 30%
  • Management reports gaining over 2.5% in market share in NA side-by-side market for the 2018 season
  • Can-Am SxS up 25% in all  international markets:  Europe/Middle East, Latin America and Asia-Pacific.
  • Management states:  “We are seeing solid growth across the lineup, and the popularity of our specialized models such as the Defender LONE STAR, the Maverick X3 rock crawler and our mud-ready Maverick X3 and Defender is helping us deliver superior profitability for us and our dealers.
  • Management increased guidance for Year Round business to up 18-21% from previously guided 12-15%
  • Can-Am has more than doubled their side-by-side retail volume since 2015 with 6 new platform introduced over the past 3 years and on target to reach 2020 goals one year in advance
  • Room to grow in the Defender side-by-side segment
  • Some cost pressures from commodity prices and freight costs

Learn more:  Earnings Call Transcript

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)