The outlook for growth in the ATV market is stabilizing from the huge double-digit rates of recent years to steady growth, and development of special niche segments is expected to be the order of the day for the near future.
Rod Lopusnak, ATV/Motorcycle marketing manager for Suzuki Motors, says specialization is the name of the game. One of the big trends in the UTV and ATV markets is specialization, he said. “Everybody’s a little bit different and everyone is talking to a different customer. It just depends on who they are talking to.”
The entire UTV segment is growing and could surpass 100,000 units within five years, according to some observers. And at least one powersports company has set up a special UTV division within its ATV division in recognition of the growth potential for this segment.
One Michigan powersports dealer told Powersports Business that sales of sport quads are growing fast, even though utility machines make up 70% of his ATV sales. The Yamaha dealer said that the Rhino UTV is so hot that units are sold before they hit the show floor.
Meanwhile, the accessories side of the business continues to grow. Tucker Rocky, the major national distributor, said recently that it is making a major push into the off-road and ATV markets.
All in all, while industry sales have slowed, first time buyers continue to enter the sport and new competitors, such as John Deere and Kubota, continue to move into the industry.
The key to success seems to be continued innovation and aggressive target marketing to new niches.psb
Copyright 2004 Powersports Business