The idea of a motorcycle has circulated “three or four times” at BRP over the past two decades, without any conclusive outcome. With a family of electric motorcycles, the recreational vehicle manufacturer now wants to go on the attack to take advantage of the curve that is looming on the horizon.
Posted at 10:43 a.m.
Updated at 2:13 p.m.
In two years, these two-wheeled vehicles will be added to the snowmobiles, personal watercraft, ATVs, two-seater UAVs and boats that will leave the factories of the company established in Valcourt.
“We had considered several times to launch a motorcycle with a combustion engine, but it is an industry in which there are several mature players”, explained the president and CEO of BRP, José Boisjoli, in an interview. with The Press, Friday. “Here, the industry is entering a phase of [transition], and we have an opportunity to stand out. »
Bombardier’s former recreational products division is no stranger to motorcycles. It launched a Can-Am motocrosser in 1973 before ceasing production of two-wheeled vehicles in 1987.
Marketed under the Can-Am brand, these motorcycles will be the very first electric models from the multinational to be offered to consumers. BRP is working to electrify its entire portfolio, which must be done by 2026.
Little information was provided by the company, which also revealed its results for the fourth quarter, where it once again exceeded expectations. The number of models and prices were not disclosed. The only certainty: there will be versions to circulate “on the roads” and “off the road”, assures Mr. Boisjoli.
With this foray into the world of motorcycles through electric models, the latter believes that the company will not have too big a gap to fill with big players like Harley-Davidson and Honda in this niche. BRP hopes that this new segment will allow it to generate revenues of at least half a billion dollars annually around 2030.
The company will be able to use its know-how in electrification and adapt its battery modules to two-wheeled vehicles, according to Mr. Boisjoli. She won’t have to start from scratch, he argues. In addition, motorcycle enthusiasts are likely to turn more quickly to electric models compared to snowmobile, ATV and personal watercraft enthusiasts, believes the president of BRP.
PHOTO DAVID BOILY, THE PRESS
José Boisjoli, President and CEO of BRP
“This will bring us new clients,” says Mr. Boisjoli. Motorcycles have access to charging stations in urban areas. Someone who buys an ATV to go hunting in remote areas has no options for recharging. This is not the case with motorcycles. »
big market
Overall, analysts felt that electric motorcycles could represent an attractive growth avenue for BRP. Martin Landry, of Stifel GMP, points out in a note to clients that the motorcycle market, estimated at between 8 and 12 billion, was the largest in the recreational vehicle industry.
We retain the aspect of electrification, which allows BRP to differentiate itself and take advantage of its investments in batteries. This new product line should be well received by dealers, who will have tools to attract new customers.
Martin Landry, of Stifel GMP
The first electric motorcycles will be delivered in North America as well as in Europe, where BRP dealers have a strong presence. In these two markets, the potential volume is 600,000 units, according to the company.
Even if the dealers who do business with the multinational did not have details, they saw the news with a positive eye. Alain Carrier, president of Performance NC, owner of seven BRP brands, says it’s “always nice” to have new products to sell when you’re a dealer.
“We already sell motorcycles here, and it’s a very popular product,” he said on the phone. It’s motivating to see manufacturers innovate. Electric cars were a niche market 10 years ago, but in 2022 this is no longer the case. There is a movement. »
BRP’s electric motorcycles will be built in its Mexican factories. Everything related to design, research and development is done in Quebec, underlines Mr. Boisjoli.
On the Toronto Stock Exchange, investors reacted favorably to announcements by the company, which also raised its quarterly dividend by 23% to 16 cents per share, in addition to announcing its intention to pay up to 250 million for redeem its shares. On Friday afternoon, the stock took $8.37, or 9.45%, to trade at $96.94.
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- 29%
- BRP expects its revenues to increase by 24% to 29% in the fiscal year ending January 31, 2023.
Source: BRP