Electrification at BRP | Two snowmobiles and a reflection on electric bikes

BRP’s electric shift will go beyond the arrival of the first snowmobiles on the trails later this year. In search of new growth vectors, the manufacturer of Ski-Doo, Sea-Doo and Can-Am is seriously evaluating the possibility of making an incursion into electric bicycles.

“We have been studying this market for a long time because there is a trend,” explains the president and CEO of the Quebec multinational, José Boisjoli, in a telephone interview with The Press. “In Europe, people are selling their second car to get an electric bike. It is believed that this trend will eventually come to America. »

The big boss of the company established in Valcourt did not have time to be unemployed on Monday. In front of dealers gathered in Houston, on the occasion of the worldwide unveiling of BRP products, Mr. Boisjoli lifted the veil on the two models of snowmobiles (Ski-Doo and Lynx) which will be delivered towards the end of the year. We are talking about “a few hundred units”. The manager also gave an idea of ​​what could, one day, come out of the company’s factories.

BRP plans to offer electric versions of its snowmobiles, all-terrain vehicles (ATVs) and two-seater quads by the end of 2026, which represents an investment of 300 million. Electric-powered motorcycles will be added next year. In the longer term, electric bikes could fill the company’s product portfolio. However, the process has only just begun.

“It’s a few years before we are in the market, underlines Mr. Boisjoli. We deploy a lot of energy on this because we know that there is a market to be seized. »

BRP figures the markets where it is not present at 70 billion. This was mentioned by Mr. Boisjoli in June 2022, when he revealed to investors that BRP had its eye on new niches in electric mobility. The global e-bike industry alone accounted for US$26.5 billion in 2021, according to data from Statista. It should continue to grow to reach almost 62 billion US by the end of the decade.

Without fanfare, the Ski-Doo, Sea-Doo and Can-Am manufacturer already laid the foundations last August for what could be at the heart of its foray into a new market. He had then acquired 80% of Pinion GmbH, a German company specializing in gearbox technology.

“We were looking for a technology to set us apart,” says Mr. Boisjoli. Pinion offers a drivetrain for e-bikes that eliminates the rear derailleur. This acquisition was one of the steps that facilitated our entry into this market. »

Then, last September, a group dedicated to new categories of “low voltage and human assistance” products was created.

Step by step

The first electric snowmobiles will leave the Valcourt plant later this year. However, it will not be possible to obtain them from dealerships. Instead, they will be deployed in North America as well as in Europe with tour operators, such as BRP Experiences in Montebello, Lapland Safaris (Finland) and Grand Adventures (Colorado), for the next season. Deliveries should be made from next December.

With an estimated range of 50 kilometers before recharging, we wanted to see the snowmobiles at work in a “controlled environment,” explains Mr. Boisjoli. “We’re starting with this segment because it’s perfect. These operators will make two or three daily trips and cover limited distances. If all goes as planned, we hope to be able to offer [les motoneiges] to a wider clientele for the 2024-2025 season. »

This is when we should have an idea of ​​the retail price.

Electrification monopolizes 200 people at BRP in Valcourt, where the company is designing the equipment that will be used to manufacture battery packs. Around 100 employees at Rotax in Austria focus on everything related to electric motorization.

Despite fears of recession and rising interest rates – factors that may reduce consumer appetite for snowmobiles, personal watercraft and other electric vehicles – 17 of 19 analysts who follow BRP’s activities recommend the purchase of the title.

Mr. Boisjoli declined questions regarding the strength of demand and the outlook at BRP, emphasizing that he had to respect the silence period (quiet period) which precedes the publication of the financial results in a few weeks.

The Toronto Stock Exchange was closed Monday for Family Day. As of Friday, the company’s stock had closed at $120 – 50 cents off its 52-week high.