Taken from the Montreal Gazette BRP Announces it is looking into the Two Wheel Motorcycle Market.
Company spokesperson Sylvain Morissette confirmed on Wednesday that the company is currently evaluating the market, the possibilities and trends after an industry analyst suggested the eventuality.
BRP (Bombardier Recreational Products), which belonged to Bombardier until 2003, once sold Can-Am bikes in the 1970s.
Morissette said that BRP considered several growth opportunities, but did not say precisely when the decision would be made, or when the products would arrive on the market.
For the moment, BRP is focused on developing its existing products.
Wednesday, the company presented three new 2017 models during an industry event held in Orlando, Florida. BRP will sell a vehicle coast-to-coast — the Can-Am Maverick X3 — a new watercraft, the Spark TRIXX and a limited edition of the Spyder, the Can-Am F3.
The Can-Am Maverick is the third vehicle coast-to-coast presented since last September. BRP is committed to developing its range of products every six months until 2020.
The Valcourt Quebec company expects to see its revenues increase by nine per cent annually to reach $6 billion U.S. dollars by the 2021 fiscal year.
Analyst Benoit Poirier of Desjardins Capital Markets believes that the motorcycle market is bright. He estimates that BRP could eventually add $325 million U.S. to their annual revenue and gain three to five per cent market share.
“This market is supported by a solid foundation, and we believe that BRP has the key elements in place to enter this sector, naturally or by acquisition,” he explained in a report.
According to Poirier, 82 per cent of dealers of motor sports vehicles sell motorcycles and would be interested in purchasing new products. BRP has more than 4,200 dealers in some 100 countries.
The company would benefit from its motor expertise and profit with their manufacturing operations in Mexico, Poirier indicated.
However, Andy Galliher, president of Freedom Cycle in Concord, New Hampshire finds the sale of motorcycles very slow — except for dirt bikes.
“I believe it’s a very difficult market to come up with a new product and many (existing manufacturers) have several years of experience under their belt,” he said in an interview.