ed, is the fact that most of the market seg-
ments in the STOV industry are maturing and
experiencing slow growth. Even the vaunted
Polaris, with its incredible record of growth,
disclosed the fact, in its last quarterly earn-
ings report, that, indeed, overall industry
growth is negligible. We at SVR have been
pointing out in our last two major, strategic
reports that even the off-road utility and
recreational market was slowing and that
the glory days of double-digit growth—for
the overall market and probably for most of
its participants—were over. And, of course,
everyone knows that the golf car market is
slowly declining. These vehicles, as they are developed, will
have a profound effect on the way we nav-
igate in and out of our gated communities,
adding more efficient and more powerful
electric motors, innovative controls, and vast-
ly improved batteries for greater distance.
These are products and components would
not be specifically developed for the STOV
industry as we now know it, because the
market is too small to provide the necessary
incentives. Once fixed on the much broader
market of urban mobility and individualized
transportation as a service, the time and
investment for such new products becomes
increasingly available.
Into this stagnating business environment
TSV made its move to become a big play-
er. Growth can hide a plethora of missteps
in planning and execution, but if its no- or
slow-growth, the warts become highly visible.
The battle for position in the industry comes
down to gaining market share, and that in
turn, spins around distribution and service.
Distribution can expand your market; service
assures you maintain it. Is there a place for the big three in the
urban mobility space?
Growth requires a new vision
So, are there growth opportunities for the big
three companies we associate with golf cars
and which have, viz., Textron, moved into
adjacent markets? I believe the answer is,
yes, but a new vision is needed. (By the way,
no need to worry about your E-Z-GO product,
or the Cushman work vehicles. You’ll still get
the solid performance you’ve been used to
over the years.)
The growth vehicle (pardon the expression)
will, however, revolve around issues of urban
mobility. Small vehicle solutions to the prob-
lems of congestion and pollution are crop-
ping up around the world, although mostly
in Europe, initiated quite often by start-ups.
The answer to that is, yes, but, as noted
above a new strategic vision is needed.
Urban mobility startups don’t need a lot of
encouragement. They have the vision and
the enthusiasm, and have demonstrated the
ability to attract the attention of venture capi-
tal firms. By comparison, you have the tradi-
tional golf car manufacturers headed by giant
corporations, in the case of the big three,
and, as far as I can see, are doing little, so far,
to seize the urban mobility opportunity.
And look at the assets that could be brought
to bear: Substantial capital and fund-raising
power, electric drive train technology and
expertise, highly efficient manufacturing
capability, sophisticated fleet management
systems, and extensive dealer networks that
could both sell product and provide mainte-
nance services. Will the management change
at TSV signal a new direction? We shall see.
And it only takes a decisive step by one ma-
jor player to bring a stampede of change
throughout the industry.
Contact Steve at [email protected].
Or check out our website at www.smallvehicleresource.
com, where you will find an extensive database of vehi-
cle models and can make side-by-side comparisons of
vehicles based on a full set of specifications.
NOVEMBER 2018
21