Dealers Show Increased Interest in ATVs from China, Taiwan

Some large domestic U.S. dealers are beginning to “test the water” with sub 250cc and smaller product from Taiwanese, Chinese and South Korean manufacturers, reports Tim Conder, senior analyst with A.G. Edwards & Sons., the St. Louis-based securities firm. “We do not believe this represents an immediate threat to Honda, Yamaha, Polaris (together approximately 75% of the U.S. market) or remaining players Kawasaki, Suzuki, Arctic Cat and Bombardier,” says Conder in a recent report. “However,” he writes, “manufacturers from these Asian countries could begin to be more of a competitive threat over the next three to five years if more advanced engine technology, consistent/standardized warranties and dealer liability support are developed. Obviously many ‘ifs’, but something to definitely monitor going forward.”

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