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Lower Priced Units Remain Consumer Focus

Our latest survey of powersports dealers indicates that the retail sales environment remained weak in February.

The general theme in the marketplace is that consumer interest was focused on lower-priced ATV units and utility products from Can-Am, Polaris and Honda.

In the recreational segment, Polaris’ heavily discounted RZR 1000 models were a topic of conversation, as was Can-Am’s Maverick X3 Max. In fact, contacts anticipate very strong demand for the all-new Can-Am model when shipments begin this month.

In the heavyweight motorcycle market, the new 2017 Harley Milwaukee-Eight models continue to drive foot traffic to dealerships, but the bulk of sales continue to be occurring on carryover 2016 inventory and used bikes – in large part due to attractive incentives provided by dealers. Consequently, it appears carryover inventory reduction accelerated in February compared to January.

All in, the beginning of the year is off to an OK start as weather has been unseasonably warm in many markets. That said, March (a seasonally more important month) will likely prove to be more telling of how early demand trends will unfold in the early part of this year.

For a complete copy of Seth’s research this month, download the PDF at http://bit.ly/2nUIQ8G

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