PowerSports Business

March 13, 2017

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FOCUS PSB UTV-Utility 18 • March 13, 2017 • Powersports Business www.PowersportsBusiness.com Lightspeed study shows nearly half of all UTVs accessorized when sold New UTV unit sales have grown from 23 per- cent of the units sold by powersports dealers to 27 percent from 2014 to 2016, according to CDK Global Recreation data provided exclu- sively to Powersports Business. The data comes from CDK's Lightspeed DMS dealerships, with 1.8 million new units sold from 2014-16 in the UTV share grows 4 percent in last two years % OF MARKET HELD BY NEW UNITS SOLD BY PRODUCT LINE Same Store Sales: Year-over-year comparison of count of units sold in dealerships, 1.8M new units sold between Jan. 1, 2014, and Dec. 31, 2016, in the U.S. and Canada % OF MARKET HELD BY NEW UTVS BY PRODUCT SEGMENT IN 2016 By unit selling price, 162K new units sold between Jan. 1 and Dec. 31, 2016, in the U.S. and Canada Work 7% Sport 36% Multi-Purpose 57% 4% 5% 24% 23% 44% 3% 4% 23% 25% 44% 3% 5% 23% 27% 43% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Scooter Snowmobile ATV UTV Motorcycle 2014 2015 2016 U.S. and Canada. Looking at the count of new unit sales over the last three years, motorcycle still holds the majority of the market. Motorcycle finished 2016 at 43 percent of the total units sold. The growth in the UTV market had previ- ously appeared to impact ATV sales. This trend seems to be naturalizing as ATV has held 23 percent over the last two years. Scooters and snowmobiles combined have held steady at 7-9 percent of the market over the last three years. Initial glance at the data might lead one to believe that UTV sales are cutting in to motor- cycle sales. Although no conclusion has been drawn, the underlying data in this chart does not indicate that this is likely the case. Unit count trends indicate that 2015 was a higher selling year for nearly all product lines com- pared to the surrounding years. Further analy- sis, including data from future sales in 2017, would be required to identify an educated conclusion. The study also found that multi-purpose units accounted for 57 percent of 2016 side- by-side sales. Sport side-by-sides consumed 37 percent of the market, while work UTV units consumed 7 percent. Data was taken from 162,000 new units sold in 2016 at deal- erships with the Lightspeed DMS. And, one out of every 10 UTV units sold in 2016 was a used unit, while nine were new. As a point of reference, types of units that would fall into the specific categories are the Kawasaki Mule (work), Polaris RZR (sport) and Polaris Ranger and Honda Pioneer (multi-purpose). When looking at the trends of trades taken in on UTV sales, it is apparent that many buy- ers are upgrading their old models for the latest models of the same kind. Topping the list at 42 percent of trades is multi-purpose UTV models being trading up for the same type of model. Overall, 32 per- cent of all trades taken on a UTV are a multi- purpose models. Forty percent of trade-ins for a sport side-by-side come from another sport side-by-side. In the work segment, 33 per- cent of work UTV buyers are trading up for a new work model. While ATV units are still commonly being traded for a UTV, this trend is on the decline. PSB Source: CDK Global Recreation

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