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Powersports Business • October 2024 • 19

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searching for hard-to-find lower-cost UTV models instead opted for the purchase of NEVs , with many in turn outfitting them with lift kits and off-road wheel and tire sets .

NEV sales for 2023 totaled an estimated 210,000 new units , down 6 % from 2022 , which was up 56 % from 2021 . In 2021 , sales were nearly double 2020 sales . The 2023 results signify the first downturn after nine years of growth for the market .

Approximately 60,000 to 70,000 used golf carts are reconditioned and upgraded to PTV or LSV speed ratings each year and sold into the consumer market . Retirement communities and local areas where NEVs are allowed on 35 mph roads are popular markets for these conversions .

While leading companies in the golf car market – E-Z-Go , Club Car , and Yamaha – play a key role in NEV production , here too we find non-traditional brands marketed by importers and distributors making waves in the market with product sourced from China . Among the leading newcomers are distributor brands like EVolution Electric Vehicles , ICON EV , Bintelli , and newcomer Kandi America , each of which has been making great strides in market share .

Up until 2021 , nearly all the NEV volume was going through Golf / Golf Accessory dealerships . With the rapid growth of the market in the last 36 months , PPM estimates that perhaps 20−30 % of the NEV sales increase went through powersports dealerships and other independents like marine and RV retailers .

WHAT ’ S NEXT FOR UTVS ? Dealer inventories are building , higher interest rates and inflation are raising purchase costs , and consumer confidence is teetering , yet the market in 2023 experienced a 3.5 % uptick in sales following a two-year cooling period . What ’ s next ?

Based upon PPM ’ s U . S . UTV monthly tracking report , UTV retail sales for the first quarter 2024 were up 7−8 % compared to 2023 . However , the second quarter slowed considerably with growth between 1−2 %. PPM projects a slight decline for the third quarter of 2024 and possibly a larger decline in the fourth quarter .

CHINESE TARIFFS Other forces are shaping the side-by-side market , making forecasting a challenge . The United States International Trade Commission ( USITC ) recently enacted 25 % tariffs on Chinese-produced steel , aluminum , and other products , including UTVs regardless of point of manufacture .

Previously the tariffs , initiated by the Trump administration and extended by the Biden administration , impacted only UTVs fully produced in China . With the new tariff , Chinese OEMs with offshore manufacturing or assembly operations in Vietnam , Mexico , Europe , or elsewhere could be subject to tariffs on components sourced from China .

Additional tariffs , some reaching 100 %, were also enacted in May on items including Chinese EVs and lithium batteries , with additional products being phased in over the next three years .

The USITC is also considering issuing 100 % tariffs specifically on Chinese-produced “ low-speed personal transportation vehicles ,” including golf carts , PTVs , and LSVs following a petition filed by Club Car and E-Z-GO for “ illegal and unfair dumping and subsidies .” The European Union appears to be following similar action on behalf of their domestic manufacturers .

PPM projects 2024 North American retail UTV sales to at best , level with 2023 with the NEV outlook more uncertain .

PSB Editor Brendan Baker has had a long-term demo unit to play with for the past few months . The 2024

Polaris Turbo R becomes the Pro S for MY25 , but there may be a muddy ’ 24 model available somewhere .

Power Products Marketing ( PPM ), a Minneapolisbased research firm , has curated its Powersports retail sales data for more than 20 years . PPM provides detailed market share data and research services to the global power equipment industry . Markets covered include Powersports , Diesel Pleasure Boats and Commercial Vessels , Farm ( AG ) Machinery , Construction Machinery , Lawn & Garden Equipment , Generator Sets and Underground Mining Equipment .