PowerSports Business July 2023 | Page 15

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OPINION

Powersports Business • July 2023 • 15
FROM THE EDITOR INSTA TIPS

The China factor

It wasn ’ t that long ago when the auto and motorcycle industry feared Japan . In the 1970s , during the energy crisis , there were lines around the block at gas stations nationwide as fuel prices surged to $ 1 a gallon . It spelled the end
BRENDAN BAKER of the muscle car , and it also ushered in the age of emissions and the EPA . The motorcycle industry gained new riders partly because of the energy crisis , but also likely because of a movie featuring Malcolm Smith riding in the desert . Japanese motorcycles were coming into dominance due to their superior engine design and durability . The Japanese automakers also became prominent because small cars got much better fuel mileage than the big American V8−powered cars of the day .
By the 1980s , American car companies were in an all-out war with Japanese automakers as they continued gaining market share . Japanese motorcycles also gained market share in America . Soon , resentment and mistrust set in , and American companies asked Congress for help to fight back .
It sounds all too familiar now as American manufacturers are going toe-to-toe with Chinese manufacturers for EV market dominance . China is home to the largest market for electric vehicles and is the largest supplier of the raw materials that produce the batteries for them as well . In the motorsports industry , electric bikes , motorcycles , and UTVs are a very small segment with an enormous potential for growth . But the billion-dollar question is , how soon will it be here ?
China grew to embrace EVs starting with e-bikes . In 2010 , there were an estimated 120−million of them as the economy transitioned from gas to electric . Remember , many Chinese people relied on bicycles for basic transportation for decades , then scooters , now , followed by EVs .
Like Tesla in the U . S ., China was an early adopter of electric and the government did everything to support its growth . There are now more than 200 electric vehicle manufacturers in the country , with several that are affiliates of U . S . and European manufacturers . Tesla has the second largest market share in China and has recently slashed the prices of the Model 3 and Model Y to almost half the price of what they cost in other markets .
China scaled up so quickly that even Ford says it can ’ t yet compete with them . China is building so many EVs that they are beginning to be exported in larger numbers .
In America , we love our internal combustion engines ( ICE ), and I include myself in this statistic .
Source : © Adobe Stock - Rawpixel . com
I have been building cars , bikes and karts with IC engines all of my life . I love them , and often joke that I bleed motor oil . But there ’ s a new game being played all around us with battery electric vehicles . And the more we sit on the sidelines , the further we fall behind .
Did America win the small car war of the ’ 70s and ’ 80s ? I think we all know the answer to that one . And did America win the bike war with Japan ? In the ’ 70s , Indian Motorcycles was bankrupt and Harley-Davidson was almost bankrupt , and the standard upright Japanese classic motorcycle became the dominant style in America .
As the saying goes , the only constant is change . The ancient Greek philosopher Heraclitus once observed that the natural world was in a constant state of movement . He famously said , “ You can ’ t step into the same river twice ,” as even the rocks were subject to change over time .
We are on the cusp of a new electric era , and we can either embrace it or fight it . And if you fight it , what is the benefit to your future growth ? I ’ m sure there were some people who didn ’ t trust motorized carriages when they first saw them . But over time , things change and there ’ s more momentum going in that direction than staying put .
I think we should all have an open mind about electric vehicles . After test driving the Volcon Stag , I have no doubt whatsoever that electric can work and be something that consumers will want to buy . But the price may take some time to come down . Many of these vehicles are very much on the premium side of the market .
From what I hear , the LiveWire is an excellent bike . I ’ ve never ridden one , but the price seems to be a sticking point for many ( including this writer ). Harley needs to find new customers for their electric bikes as their traditional customers don ’ t seem to give a you know what about electric . Most Harley riders say they want the rumble and the noise . But please , let ’ s not add fake exhaust sounds like Dodge tried to do with its EV Charger .
I know there are many dealers , and enthusiasts , who think that EV is just a fad , or a political stunt , but if you look at all of the money companies and governments are investing in infrastructure and products , it is hard to imagine anyone will pivot away from it now . We know powersports is not automotive , as long time car dealer , Teddy Morse , told us in our interview about acquiring a new Harley store and powersports franchise . He said , “ People buy cars because they need them , and they buy motorcycles because they want them .”
So as long as consumers still want ICE powered motorcycles , then we should be giving the people what they want . And judging by our EV survey , powersports consumers don ’ t seem all that interested in electric . Yet . The Stag and LiveWire are just the beginning . When the infrastructure is more in place and consumers have level two chargers in their garages , it will be a different story . And , hopefully , some healthy competition will improve the products and lower the prices . But time will tell .
My gut tells me that the EV crossover is coming in the next three to five years . As an old school ICE guy , I just hope to keep some of my gas-powered toys while tooling around town on an electric bike or scooter that is at least partially made in the U . S . A . As long as it ’ s twowheels , I ’ m good .
Brendan Baker works out of his home office in Akron , Ohio , where he lives with his wife and two rescue dogs .
Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .
Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .
Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at mhubbard @ epgacceleration . com .
HEXCO MOTORSPORTS OSHKOSH
@ hexcomotorsports Followers 787
Show your customers what you do to provide them with quality customer service like Hexco Motorsports of Oshkosh , Wisconsin recently has . The dealership shows employees gathered in the parts department for its monthly huddle with a caption that reads , “ Back at it as always ! Monthly Hexco Huddles keeping us on track and always improving for you , our customers ! Never hesitate to reach out with questions , comments , reviews , etc .! We are always looking to improve and if you have had a great experience we love to share them with the team as well .”
CENTRAL TEXAS HARLEY-DAVIDSON
@ centraltexasharley Followers 4,608
Share the fun that customers have at your dealership ’ s events with pictures ! A recent post from Central Texas Harley-Davidson of Round Rock , Texas , made the PSB team wish we hadn ’ t missed its latest rally . So , we encourage you to post photos from your events too , and show customers who didn ’ t attend why they shouldn ’ t miss your next event . Part of the caption reads , “ Just a few of the shots that we got from our Texas Riders Rally ! This year was the biggest turn out yet and we are so thankful to each and every one of y ’ all who came out to support ! We want to especially thank everyone who made it happen .”
KARL MALONE POWERSPORTS SLC
@ malonepowersportsslc Followers 2,228
If your team is out riding , share your excitement with customers on Instagram ! Karl Malone Powersports SLC of Salt Lake City , Utah , showed off the availability of the new Polaris XPEDITION with snapshots from the day dedicated to riding . The post served as a reminder that the dealership ’ s team , like its customers , values riding days in the dirt . The caption reads , “ The crew is out riding the new @ polarisorv # xpedition at Sandhollow , UT . We still have a handful left for sale . Please text or call 801-972-8725 . We love to say yes !”