Polaris ORVs starting to take share from Jeeps, pickups, analyst says

“Dealer feedback and registration data indicate that Polaris off-road vehicle sales have rebounded nicely from a late-summer slowdown,” according to a research note provided to Powersports Business by BMO Capital Markets analyst Gerrick Johnson.

Johnson reports that consumers “seem especially pleased with new utility side-by-side introductions.”

Johnson writes that BMO Capital Markets believes “that the off-road vehicle industry is performing well, enjoying a robust replacement cycle, and also experiencing an inflow of new riders and participants. We believe that Polaris is benefitting from this growth and is also taking share; not only from other ORV OEMs like Honda, Kawasaki, Suzuki, and Yamaha, but also from other vehicle classes such as Jeeps, pickups, and SUVs. We are confident in our Q412 ORV sales growth estimate of +18% and total company sales growth estimate of +15%.”

Johnson also said that feedback from dealers “has been especially strong regarding the company’s newly introduced utility models: the Ranger XP 900 and the Ranger 800 mid-size, both the largest displacement Polaris utility vehicles in their class. Those who use side-by-side vehicles for utility purposes seem pleased that not all the new innovations were going to recreational users.”

Citing data from Polk and BMO Capital Markets, Johnson reports, “Polaris’ total September ORV registrations increased 18 percent (on a year-over-year basis), up from just a 6 percent increase in August. Industry registrations grew 9 percent, up from a 2 percent pace in August.”

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