PowerSports Business

May 1, 2017

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ANNUAL NEW ATV UNIT SALES BY CATEGORY 712,340 New units sold, Years 2011-2016 5,240 6,580 7,170 10,940 6,700 24,990 26,140 27,800 24,920 25,400 99,760 105,900 113,400 114,100 113,300 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2012 2013 2014 2015 2016 MULTI PURPOSE-2P SPORT MULTI PURPOSE All Canadian sales dollars were converted to USD using the conversion rate: 1 USD = 1.33 CAD. ANNUAL NEW ATV UNIT SALES BY CATEGORY Looking at 712,340 new ATV units sold from 2011-16, we can see the breakdown of ATV sales by multi-purpose, multi-purpose 2-up and sport. An example of a multi-purpose model is a Honda TRX420FM. An example of a multi-purpose 2-up model is a Polaris Sports- man. And an example of a sport model is a Yamaha YFZ450. This study includes only units that have been VIN decoded, where the category can accurately be identified. Units that are not VIN decoded have been excluded. Multi-purpose ATVs continued on a steady path in 2016, with 113,300 sold at Lightspeed dealerships, compared to the 114,100 sold in 2015. It's a marked improvement from the less than 100,000 that were sold at Lightspeed deal- erships in 2012. Sport ATV sales at Lightspeed dealerships also held a steady proposition, with 24,920 sold in 2015 and another 25,400 sold in 2016. Meanwhile, multi-purpose 2-up ATV sales dropped significantly in 2016, with 6,700 unit sales at Lightspeed dealerships, compared to the 10,940 that were sold in 2015. In this study, 2015 was the strongest year in the ATV market; however, 2016 was right on its tail. 2016 was the third-strongest year in the five-year comparison, coming in at 3 percent down from the previous year. Multi-purpose units continue to dominate the ATV market, holding 78 percent of all ATV units sold in 2016. Sport units have been on a slight decline, grabbing 17 percent of the market in the last two years, or down 2 percent from 2012-14. Multi-purpose 2-up units saw the largest drop in volume when comparing 2015 to 2016, and holds 4-7 percent of the market across all years in this study. In Chart D, we are comparing two differ- ent views of accessory dollar sales. The red bar in each region represents the average acces- sory dollar amount that is spent at the time of unit purchase when the customer purchases an accessory. The blue bar in each region represents the average accessory dollars spent at the time of unit purchase across all unit sales, regardless of whether an accessory was sold or not. It's apparent that Canadians find value in ATV accessories. More Canadian consum- ers add accessories when purchasing an ATV. When Canadian consumer purchase an acces- sory, they average nearly $900 worth of acces- sories installed. Canadians spend an average of $200 more in accessory purchases than the next closest U.S. region. With the exception of California, U.S. regions have a $100 swing among each other regarding average accessory sales when an accessory is sold. Consumers in the South spend an average $671 on accessories when an accessory is sold. When you compare this to accessories sold to all units, the South average $166. In the West, consumers average near $600 when they purchase accessories. More consumers in this region invest in acces- sories, making their average across all sales near $200. Californians do not invest in accessories, spending the lowest amount of all regions. Californians spend $270 on average when they buy an accessory and $33 on accessories across all sales. Californians literally spend about the same amount as buying 66 tacos from Jack in the Box, including tax, Ethington notes. AVERAGE DOLLAR ATV ACCESSORY SALES PER NEW UNIT In Chart E, we see that multi-purpose 2-up units experienced a $47 drop in average accessory sales per unit in 2015. This blip was recovered in 2016, where average accessory sales returned back to similar dollar amounts as 2014. At $202, the average accessory dollars for multi-purpose units appears to be on the decline in 2016 when compared to 2015. More data from 2017 would be needed in order to identify if the accessory sales for multi-purpose units will see the same bounce back as multi- purpose 2-up units. The average accessory dollars spent on sport models reached its lowest point in this 15-year study in 2016. Coming it at an average of $37 per unit sold, sport consumers are buying the equivalent of eight more Jack in the Box tacos than the California consumers are, Ethington duly notes. PSB CDK CONTINUED FROM PAGE 18 Source: CDK Lightspeed CHART A www.PowersportsBusiness.com

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