Powersports is Bucking the Trend for Traditional Aftermarket

Tapping into trends before an upward trajectory is a definitive goal for any business. For the automotive aftermarket, hitting the mark is a vital strategy that can set up success for years to come.

In general, vehicle sales have been used as an indicator to gauge industry health prior to the pandemic. Despite the dismal economic forecast blasted by 24-hour news stations, and entire industries being shut down completely, recreational sectors stood firm through 2020 and broke ahead in 2021. Powersports, RV, and off-road accessory manufacturers, in particular, reported impressive earnings all throughout the pandemic and beyond.

Indeed, quarantine lockdowns supercharged an already-growing consumer interest in UTV ownership – largely fueled by the increased exposure of UTV motorsports. As manufacturers get better at understanding who exactly this customer is, the aftermarket finds the segment ripe with crossover opportunities.

New Consumers Are Finding Powersports To Escape

Polaris alone accounted for 700,000 new customers who purchased from dealerships in 2020, growing the company’s base by 40% – as stated by Pam Kermisch, Polaris VP ORV Marketing and Growth Officer in a recent Dirt Ventures Magazine article. And, BRP – parent company to popular brands like Can-Am and Ski-Doo – reported Q1 2021 powersports retail sales were up 39% compared to the same period last year. Looking forward, the company expects growth between 44%-58% — with North American off-road vehicle sales being targeted as ground zero for the priority marketplace.

By all measures, the surge in growth has been startling during these uncertain times. Immune from the lockdowns, powersports manufacturers saw customers seeking solitude by making their own way out of town and into new recreational vehicles. UTVs, the Utility Terrain Vehicle of the powersports family, used to be primarily an all-terrain work horse designed to support farm work, ranch owners, and hunters. Today, the category enjoys significant growth due to enhanced performance sport platforms that are used for recreation and racing – a lot of racing.

Motorsports Are An Industry Driver

Powersports and motorsports have long hinged on one another’s success, mutually feeling the up-and-down movement of market trends. When vehicle sales are up, motorsports will often see investment and support poured in from manufacturers. Similarly, as sales tank, the pool dries up, leaving teams and racers feeling the burn and scaling back.

Motorsports, as a live-action entertainment business, was highly affected by the 2020 shutdowns. Though, off-road racing, and desert racing in particular, seemed to dodge and weave its way through the season. As the year played out, most of the major desert races were able to take place. Regional authorities made rulings as they determined what safety restrictions to implement and when.

The Mint 400 successfully held its 2020 event in early March right before major lockdowns occurred nationwide. And despite the climate, racers showed up in droves, attracting 117 UTV entries for the 2020 event. In 2019, before COVID, the Mint saw 147 competitors across 5 classes. UTV Turbo alone featured 77 entries – the largest division in the race’s storied history.

So, what makes a UTV appealing to racers, and turns it into the fastest growing racing category?

Capability

A UTV – also known as a SxS – is essentially race-ready on the showroom floor. With minor modifications and required safety implementations, basically anyone (minding age restrictions) is allowed to enter into competition. And in some cases – like the UTV World Championship, an all-UTV race that is a pretty big deal and put on by the same promoters as the Mint 400 – there are even classes for those younger age groups. In fact, all off-road racing series feature significant UTV class competition, bolstering large entry lists.

The Can-Am Maverick family continues to set the bar with performance. Now, with the launch of the new Can-Am Commander, as well as the emergence of the Can-Am Defender family in the utility space, all three of the company’s core SxS models have serious momentum in their respective categories within the industry.

Accessibility 

Because of UTV division classes – especially entry-level ones – this style of racing has completely changed the format of climbing the ladder, so to speak. When a driver is starting out, they are usually entered into a UTV class. Additionally, with a proper credit score, Joe Schmoe off the street can start chasing his dream to become the next racing super star. Being able to finance one’s way into motorsports is unheard of in every other discipline and is pretty much unique to these new platforms.

This low barrier of entry is powering a wave of influence into the powersport manufacturers marketing strategy — which, in turn, is sending certain messages to the consumers.

Notoriety

If you win the Mint 400, you win a Polaris RZR Turbo S. If you are Bryce Menzies, a champion off-road racer, you are endorsed by RZR. And, if you are RZR, you are a major sponsor of RJ Anderson, an accomplished short course off-road racer and star of the wild viral video series XP1K that garner millions of views featuring – you guessed it – a Polaris RZR.

Short course off-road racer and King of The Hammers royalty, Casey Currie has found himself behind the wheel of a RZR, as the latest edition to gain support from Polaris. Rally champion Ken Block, known for his radical Gymkhana viral videos, enjoys an extensive partnership with BRP, endorsing the Can-Am Maverick UTVs.

These are all mega influencers getting paid by the OEMs to huck their machines at speed, which in turn gives the brands serious credibility with consumers.

It is also very interesting to see major pro-level and accomplished racers stepping down to give it a go competing in UTV classes. For example, Sarah Price, when not racing Extreme E and Trophy Trucks, is honing her skills by racing a Polaris RZR in the Sonora Rally. Trophy Truck racer Jim Beaver and Championship desert race Mark Burnette are racing exclusively in UTV Pro classes.

Additionally, off-road racers see the benefits of having UTVs in the fleet of support vehicles as well. Besides being great fun to drive, these vehicles can serve as low-cost reconnaissance / prerunner platforms. At many off-road racing events, competition may be broken up into a multi-day or multi-session format. Racers will often enter into a UTV class to get more track time and dial in their lines for their primary race effort.

Accessorizing Equals Customization

From the initial market introduction of the first UTV, the aftermarket industry tapped in as a significant player. In fact, one could argue the aftermarket definitively shaped a significant segment of the powersports industry.

For example, the entire recreational sector of sand sports will forever be turned upside down on its head. What was primarily full of VW based dune buggies and ATVs, eventually evolved into high dollar, very exotic, wheely-blasting sand cars and ATVs.

Shiny and expensive paint jobs with flashy lights and loud exhaust still exist, but are mostly found on the invasion of UTVs that now infest the sand dunes. And to that note, UTVs have all but replaced ATVs as well. The aftermarket manufacturers of accessories and performance products are completely responsible for this trend specifically.

Most manufacturers accept their complex relationship with the aftermarket, because they know accessories help sell vehicles. Once automakers realized the aftermarket was producing accessories or vehicle upgrades that could not be had from the factory, however, they shifted into high gear. Many OEMs now offer factory-approved accessories from either their own production or through partnerships with aftermarket giants hungry for more market share.

The powersports industry has followed suit.

Manufacturers like Polaris and BRP are dropping huge investments to offer endless options for consumers to upgrade and totally personalize their desired vehicle right from the website catalog. The Can-Am Commander is presented with over 170 accessories all designed specifically for this vehicle platform.

“We’ve manufactured OEM accessories since the beginning, and have significantly ramped up efforts over the past decade,” said BRP’s Global Consumer Public Relations Specialist, Charlie Wagner. “Parts, Accessories and the XPS Brand of Lubricants and Care products play a critical role across our entire lineup of powersports vehicles. We believe that accessorizing is a great way for customers to enhance their brand experience while personalizing their vehicle to their needs and preferences.”

While BRP does have some co-branding initiatives, the vast majority of its accessories are developed in-house as part of the vehicle development process by a dedicated team. Wagner said this strategy ensures the best possible integration, fit, finish, and installation.

“Our accessory portfolio is omnipresent in all of BRP Brands,” she added. “BRP counts more than 4,000 unique accessories for its Ski-Doo, Sea-Doo, Can-Am ORV, and Can-Am On-Road lineups.”

Powersports Accessorizing Is Proving To Be Big Business!  

Four thousand unique accessories offered by just one OEM is brow-raising if not mind-blowing! This includes everything from various cargo mounts, windshield/roof/door configurations, navigation mounts, and so much more.

OEMs may be stepping up their game, but aftermarket manufacturers are still in it to win it. Factory products are often made with efficiency, cost-effectiveness, and universal appeal at top of mind, as the goal is to maximize profits. Therefore, unique styles and out-of-box innovations can be harder to come by.

This leaves room for the aftermarket industry to do what it does best: Make high-quality desirable products that offer viable modifications and improvements. The door is wide open for performance gains, auxiliary lightning, and basically thousands of unique opportunities for individual personalization.

Cover It Up

Aftermarket giants, like Truck Hero’s Extang, have identified new market opportunities developing UTV specific products. Say what? A tonneau cover manufacturer offering products for vehicles that are not trucks and do not feature traditional truck beds? How could that be?

Typically, accessorizing is connected to a region and its attached interest. For UTVs, the big angles in the west are performance, safety, and communication. In the mid-west, accessorizing is all about hunting and ranch work. In the south, it’s all about mudding and high-lifters.

And in many states around the country, UTVs can be registered and legal to drive on the street. Everyday, in towns across America, there can be thousands of these UTVs headed to the hardware store or parked at a local diner. And, sometimes, they have to leave unsecured valuables exposed.

Extang listened to customers’ requests and brought to market a versatile Solid Fold 2.0 UTV Edition tonneau cover. Beyond the lockable security and convenience, this is an ideal upgrade for any UTV owner who may want to protect their cargo from severe weather. (Lookin’ at you, northern folks.) Not to mention, a high quality bed cover just looks great too!

With powersports vehicle sales through the roof, the market is ripe for the aftermarket industry to make significant moves in this space. The endless opportunities for aftermarket accessory manufacturers only depend on one’s imagination, and the ability to identify solutions to problems that may not even exist yet.

Do your part by providing feedback – or thinking up your own solutions. Not a UTV expert? Become one by driving regularly, or perhaps owning one (or four). You know, one for every season. Plus you can tell your spouse, it is a write-off for market research.