Analysts see powersports dealers continue modest decline through Q1
According to a recent LinkedIn post by Woods Cycle Country Dealer Principal Mark Sheffield, BRP and Polaris dealers continue to see modest declines through Q1.
Sheffield writes that over the past week, Polaris began reminding dealers that rebates and promotions on 2024 models would end on July 31.
“Some additional 0% financing promotions were announced to support sales of leftover 2024 models. In most cases, these can be used in conjunction with rebates and other programs (usually a customer can select financing promotion or rebates, not both),” he writes.
Sheffield also refers to the promotional analysis provided by North Coast Research, which covers Polaris and BRP in its portfolio. According to North Coast, “With the Spring selling season approaching, we recently engaged with ORV dealers to gauge demand, promotional activities, and inventory dynamics.”
Key takeaways from the report include: Retail sales down low-single digits in January and February, with utility volumes outperforming; dealer outlook for 2025 remains stable, expecting retail units to be slightly down to flat; increased promotional intensity from Polaris Inc. sequentially, but a step down year-over-year, with no major changes from BRP; and an improved aged inventory environment from both Polaris and BRP compared to last year, though dealer feedback on absolute inventory levels is mixed.
Retail sales continue to be slower year-over-year, with dealers reporting trends down low single digits quarter-to-date. Midwest and Northeast dealers noted healthy snowmobile unit growth due to improved snowfall trends and soft comparisons. Dealer outlook for the year is slightly down to flat, an improvement from December’s low single-digit declines, driven by a stabilizing interest rate environment and strong demand for premium utility units like Polaris Northstar and Can-Am Defender Limited. Promotional intensity from Polaris has increased for MY25 units, with more models receiving rebates and special financing rates adjusted. Inventory levels are moving in the right direction, with Polaris and BRP making significant progress in rightsizing inventories, though dealer feedback on inventory health remains mixed.
–North Coast Research
To read the full analysis, check out the PDF below:
$45k for some of the new side by sides. No wonder the market is going down. Not everyone can think of paying that much for a toy. They have already destroyed the snowmobiles with the high prices.