Utility Vehicle Market Segment Highlight: Ruralpolitans

A recent story in the Wall Street Journal focuses on a back to the country movement by “ruralpolitans”, people moving from cities and towns into more rural areas.  The ruralpolitans can be split into three groups:  young people buying land as an asset or investment,  exurban commuters hoping to escape sprawl; and back-to-the-land types, sometimes referred to as hobby farmers.  The trend is being driven by both the old and young.  Baby boomers are the biggest driver but 20 and 30 somethings whose less tangible investments took a hit in the recession are also a force.

The ruralpolitan trend is impacting not only rural real estate markets but ancillary markets like utility vehicles.  Manufacturers are taking notice and responding to this growing segment.

Manufacturers also are tweaking seats and designs to suit this new generation of first-time users, including females. “We took a lot of women out on tests to make sure the vehicles are still badass for guys but comfortable enough for a woman to drive every day,” says Aaron Hanlon, product manager for Cub Cadet Utility Vehicles, a brand of MTD Products Inc. Polaris Industries Inc., known for its powerful off-road utility vehicles, this month is rolling out its first low-maintenance, eco-model: an all battery-powered ride called the Ranger EV.

Learn more:  WSJOnline.com

Battery Developments and Implications for STOVs

The ongoing development of battery power holds significant potential for small, task-oriented vehicles (STOVs).  Most of the development and most discussion and analysis of battery development is in the context of powering on-road vehicles.  The crumbs off the table of this development process, however, could have a significant impact on market development of small, task-oriented vehicles.

STOVs are certainly not confined to electric power, but given the trend toward electric power in all but the off-road UTV (and derivatives) market–and that is coming, too–as well as the market drivers pushing toward electric, a focus on electric power is hardly unjustified.

In a presentation at the Industrial Utility Vehicle Technology Conference, I outlined four areas of product development that were needed to encourage market growth of the small, electric vehicle market.

• Greater range, moving from 30-40 miles to 100 miles;
• More power, deliverable through the adaptation of AC electric motors;
• Faster speeds, increasing from the upper limits now of 25 m.p.h. to the 40-45 m.p.h. range;
• Better ergonomic features, including all-weather driveability.

The ensuing years have seen improvements in all categories.  – Steve Metzger

For the full article see:  IUVMag.com

Cart Mart Acquires Pacific Golf Cars

Cart Mart, one of the largest distributors of golf car, transportation and industrial vehicles in Southern California, recently announced their acquisition of Pacific Golf Cars.  Pacific Golf Cars has been San Diego’s exclusive Club Car dealer for over thirty years.  The acquisitions adds the Club Car brand to Cart Mart’s existing line-up which includes Yamaha, Taylor-Dunn and Fairplay.  Learn more:  Earthtimes.org.

Oregon Governor Supports Electric Vehicle Manufacturers

Oregon’s Governor Ted Kulongoski is using a $100,000 grant from his Strategic Reserve Fund to support Brammo, Inc., a manufacturer of electric motorcycles.

The company plans to invest $51 million over the next five years to produce its all-electric motorcycle called the Enertia. That includes an $18 million headquarters and production facility in Ashland.

The governor also paid a visit to Barefoot Motors a manufacturer of electric off-road utility vehicles.  The company relocated from California last fall and started production in June at a rate of 10 vehicles per month.  Learn more:  Bizjournal.com

Polaris Announces New On-Road Division

Yesterday Polaris Industries announced the creation of a new On-Road Division with their Victory Motorcycles brand being a major component. In the press release  the company does not provide specific information about other products that may be produced by the new division:

Polaris is committed to growing its on-road vehicle business through continued growth in the motorcycle industry along with successfully introducing products into other on-road adjacencies in the future.

Polaris is well known for their off-road products:  snowmobiles, ATVs, and utility vehicles.  It will be interesting to see if they move beyond motorcycles in the on-road  space. Learn more:  Polarisindustries.com

Road Use Regulations Roundup – May

Some trends in this latest regulation roundup:

• Some cities are expanding road use regulations to include golf cars
• NEV road use ordinances continue to be passed by local municipalities although safety concerns remain an issue for some
• Demand is in increasing for allowing utility vehicles and mini-trucks on public roads
• Another state looking to adopt a medium speed vehicle law

North Carolina – Bill in the state assembly would add Currituck and New Hanover counties to a state law that allows golf cars on streets in several resort communities.

Pontiac, IL – Ordinance being drafted that would allow the use of modified golf cars as NEVs.

Normal, IL – Considering an ordinance allowing the use of NEVs on city streets.

Merrill, WI – City council passed an ordinance allowing the use of NEVs on city streets.

Colorado – House passed a bill that would allow NEVs on public highways.

Palm Desert, CA – Safety concerns have stalled a bill in the state legislature that would broaden the use of NEVs on city streets.

Minnesota – Legislation has passed both the state house and senate that would allow counties to permit the use of mini-trucks, but not on interstate and state highways.

New York – The state DMV issued an opinion that utility vehicles are not allowed on roads or ATV trails unless the law is changed.

New Strawn, KS – City council approved an ordinance that allows work-site utility vehicles and micro utility vehicles to be driven legally on city streets.

Cushing, OK – Passed an ordinance regulating the operation of mini bikes, golf carts, ATVs and utility vehicles on the streets and highways of the city.

Utah – Cities are debating allowing the use of mini-trucks on public roads. Since they are classified as street legal ATVs there is concern about allowing the use of all types of ATVs.

Oregon – Governor has introduced a transportation bill that creates a medium speed vehicle designation aimed at increasing the adoption of NEVs

Mini Trucks Offer Competition In Some Utility Vehicle Segments

I came across a story about how farmers were choosing Japanese mini-trucks to replace pick-ups for use on their farms.  This puts them in direct competition with utility vehicles which are also replacing pick-ups on farms, college campuses, parks and other areas.  The mini-trucks are typically faster than utility vehicles, a top speed around 50 mph, although some new vehicles are being built to LSV standards, and have the advantage of an enclosed cab. They offer better gas mileage than pick-ups, upwards of 40-50 mpg .

There however is an issue with registration of the vehicles and road use regulations.  The  law varies from state to state on whether they  can be  registered and or used on local roads, even if it is driving between  parts  of  the same farm. Louisiana recently passed a law allowing them to be used on certain roads.

Many of the mini trucks are purchased as used vehicles imported from Japan where various regulations apparently make it more economical to purchase a new vehicle after certain amount of use rather than comply with the regulations.  Learn more:  japanese4×4minitrucks.com and here

Rough Terrain UTVs: Is Electric Power Making Inroads?

Electric ATVs to hit the market – Potentially an indicator of electric power making further inroads into rough terrain utility vehicles, a number of electric ATVs are expected to hit the market in the near future. Barefoot Motors is coming out with their Model One and All Electric Vehicles Unlimited signed an agreement to distribute three electric ATV models under the brand GEO in North and South America. They are manufactured in Italy.