PII - BRP Plans Electrifying Growth With E-Vehicles
Keeping up its recent story of success, BRP Inc. (NASDAQ: DOOO) managed to outdo the projections of leading analysts with very strong earnings-per-share growth and hard-charging sales. The powersports vehicle maker maintains its position as a worthy rival to Polaris (NYSE: PII), which also grew but at a far slower pace. BRP's nimble, diversified approach contrasts sharply with Harley-Davidson (NYSE: HOG), which continues to focus on a limited range of costly vehicles. In fact, recent news suggests BRP has its finger on the pulse of the future in both the international market and in the field of electric powersports.
Bringing its latest product ideas to the glitzy streets of Las Vegas, BRP showed off no less than six e-vehicle prototypes at a Sept. 10 demo. With interest in electric-powered vehicles continuing to charge up across the USA and the world, its "Club BRP 2020 Global Product Reveal" included a Sonic e-kart, a Sea-Doo personal watercraft, a basic scooter, a motorcycle, and two types of three-wheeler. The models currently remain in the testing and prototype phase, but they show BRP's determination to keep up with the eco-conscious e-vehicle trend.
The electric motorcycle and three-wheeler designs are potential sources of notably strong sales. The low-cost three-wheeled Ryker is already a big hit with people looking for inexpensive outdoor fun, strongly outpacing the sales of rival Polaris' Slingshot three-wheeler, which costs approximately 2.5 times more. This year, the Ryker three-wheeler provided a 21% revenue increase for Q2 2019, despite a wet spring and early summer, which usually damps down sector sales. An electric Ryker could potentially profit from two overlapping markets at once -- fans of the affordable Ryker experience and people who prefer e-vehicles or who live in countries with stringent emissions laws.