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Denago Powersports leans into youth market, has big plans for the future

We recently joined Denago Powersports at the legendary Glen Helen Raceway in San Bernadino, California. The relatively new brand showed off some of its latest products and let the media test-drive them to get a feel for the vehicles and provide feedback to the manufacturer.

While Denago is poised for significant growth as it expands its dealer network, its expansion also aligns with the start of the riding season, which serves as the perfect backdrop for enthusiasts to hit the trails.

Denago’s general manager, David Garibyan, says its dealer network now spans the entire United States, offering a comprehensive range of vehicles, from youth ATVs to full-sized dirt bikes. And while the company’s dirt bike line is fully integrated into dealerships nationwide, four of its ATVs, including models tailored for young riders, will also soon be available on dealership floors.

The company’s headquarters is in Irving, Texas, with a key warehouse in Chino, California. Additionally, Denago is set to open a new warehouse in Tampa, Florida, later this year to enhance its distribution capabilities across the country.

Denago dirtbikes
Denago’s national Marketing Manager Steve Lawler (right) explains the new models to an Octane Media editor. Photos courtesy of Denago

Denago Powersports has been in the market since last September when the company launched the brand at the Sands Sports Super Show in Orange County. “Everything has been going well so far with the press ride,” says Garibyan. “But it’s another thing when industry professionals come and actually touch, feel and drive the vehicles.”

The Denago team was looking for feedback from the media, and a little PR never hurt either. Garibyan told us in an interview for our Power Hour podcast that Denago Powersports is positioned as a premium brand that targets affordability for families to get into the sport.

“We make nice premium vehicles, including electric, but we make them affordable so families can get into the sport. As we all know, the sport is an incredibly great way of spending time with family, being outdoors and conquering new adventures. But it is expensive. Our way of doing things is to make premium products the whole family can afford that won’t break the bank.”

For now, Denago’s model range is aimed at youth riders and entry-level riders (beginners). However, some seasoned adult riders enjoy the youth models, too, especially the e-Hawk 6 electric ATV, which is surprisingly fun at 15 mph. One of Denago’s sales reps even uses one to walk his dogs around his neighborhood, so these machines have many uses.

“Right now, we have our MX series of dirt bikes and pit bikes, and then we have our electric and gas-powered ATVs. The Y6 electric ATV features a lithium-powered, removable battery, and an app for speed control and yard boundary. There are few machines out there like this one,” Garibyan shares. “We have a gaspowered Y6, Y10, and G16 ATV from there. So we have a range of ATVs. They come in different engine displacements up to 300cc.”

Denago launched three different models at AIMExpo in February. “We had a 200cc utility ATV, a 250cc Daytona that’s a sport ATV, and then our 300cc Freelander, which is fuel-injected.”

While dealers and industry types may have heard of the Denago name, they may not be familiar with all the divisions of Tao Holding Company in China. “We describe Denago as a tree, and it’s got multiple branches,” Garibyan notes. “Powersports is one of the branches on the tree. Denago EV, a golf cart brand, is another branch. And then Denago e-bikes is another branch. Together, it’s a whole inclusive outdoor brand called Denago Vehicles.”

With Denago Powersports just getting started and signing up new dealerships nationwide, several models are already on showroom floors today. But some are in prototype stages, as we stand today. “Several, like our dirt bike line, are already in the dealer network across the country. Also, three of the four ATVs are on dealership floors now.”

Denago ATVs
Denago crew having some fun at the press event. General Manager David Garibyan is seen here pulling another Denago ATV with the e-Hawk 6 electric ATV.

Denago offers a compelling value proposition for dealers, focusing on profitability and comprehensive support. The profit margins on Denago products are nearly double those of many current OEMs, making them an attractive option for dealers. This profitability extends even to entry-level products, ensuring dealers can maintain healthy margins across the product range.

Besides financial benefits, Denago provides extensive support for both consumers and dealers. This includes wholesale financing through North Point Finance and retail financing options via Synchrony, with plans to introduce additional financing partners. This full-spectrum support ensures dealers have everything they need to market and sell Denago products successfully.

Garibyan says the youth segment is “pretty much all covered” at this point and on dealership floors. The next big push is for medium- to adult-size vehicles, which they will unveil in the next few months. That is the next phase of their plan.

Garibyan points out that the “Denago Difference,” as they are calling their marketing slogan, is the value proposition to dealers. The value proposition for Denago is profitability. The profit margins for a Denago product being sold are very gainful—almost double the margins that many competitors are offering. Even at a low price point for their entry-level machines, dealers can make money.

“The nice thing about our company is that besides the profitability, we also have support for consumers and dealers with financing and retail financing. We have everything a dealer would need to sell our product and continue growing with the Denago brand.”

Garibyan says they have big plans for the future, and the youth market was only one part of it. Like a CFMoto, they aim to become the next top Tier 2 OEM. “By next year, we want to get into big displacement ATVs and side-by-sides,” he says. “That’s the direction and what we plan to do by Q1 of next year, to have a large displacement ATVs and two-door and four-door side-by-sides. You’ll see more and more adult machines because right now, we have a lot of youth products covered.”

Youth is a huge market, which is why Denago started there. Garibyan says many families have at least two children. And if the kids don’t want to share an ATV or a dirt bike, they need to have two or more. As those children grow, they need bigger machines, so they are constantly changing. It’s a vast market, and it’s growing every year.

Many dealers may be surprised to see the MSRPs on Denago’s powersports products, and the e-Hawk 6 will shock dealers at the price point.

Garibyan says the MSRP for the electric ATV is $1,499. That’s for the whole vehicle with a removable lithium battery. And if your customer purchases a spare battery, essentially, they can ride forever. Denago estimates there are two hours of ride time on each battery.

Denago dirtbikes
Denago’s general manager explains a few of the design characteristics of its youth mini-moto lineup at the press event held at Glen Helen raceway in San Bernado, California.

Besides the profit margins, Denago offers full warranty and product P&A support through a U.S.-based brand. The company has already integrated with Lightspeed. And, according to Garibyan, they’ve even done the steps before you can get to Lightspeed, including parts diagrams and everything.

“We work with a company called HLSM. We’ve already integrated our parts system with them. Currently, we’re working with HLSM and Lightspeed to do a full integration. Once we have our dealer portal ready, dealers can go on the portal, click a few buttons, like they do for all the big OEMs, and look up the parts they need. Once that is completed, it’ll be plug-and-play and ready to go.”

For multi-line dealers, adding Denago Powersports to the mix is straightforward, simple and a great way to get add-on sales with big-ticket items that won’t break the bank. We visited Quick Style Motorsports in Ontario last month, and they said that Denago has been easy to work with and that their products speak for themselves. Many times, a customer brings in a SxS for service and sees the youth machines and will add them to his bill. The SxS is for mom and dad, and the little ATVs and dirtbikes are ideal additions for the kids in the family.

Stay tuned for our full interview with Denago General Manager David Garibyan in a new episode of the Power Hour. This brand is on the gas and will offer dealers more models in the year ahead.

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