The Montreal manufacturer of electric recreational vehicles Taiga delivered its first personal watercraft over the weekend.
Posted at 6:00 a.m.
This first Orca electric watercraft was delivered on Saturday, and Taiga aims to deliver about ten in total this week. “We delivered a few on Saturday and we will continue to deliver this week,” said Samuel Bruneau, co-founder and big boss of Taiga.
While he admits that it’s not “ideal” to deliver a first personal watercraft on July 9, he maintains that it’s not too late at this stage of the season. “There are still several good long weekends left in the summer for our customers in Quebec and Ontario,” he says.
He adds in the same breath that Taiga has many customers in the important markets of Florida, Texas and California. “These are markets where there is no winter,” he recalls.
Samuel Bruneau specifies that it is customers from Quebec who receive the first Taiga personal watercraft. “We want them to make the most of the summer and then when it starts to get cold we’ll deliver further south. »
The company hopes to be able to deliver “a few hundred” personal watercraft by the end of the summer. These personal watercraft are all manufactured at the LaSalle plant.
Taiga hopes to reach the maximum capacity of its LaSalle plant (8,000 units per year) within the next 12 to 18 months.
More details will be revealed next month during the presentation of quarterly results expected in mid-August.
Management does not provide revenue forecasts for this first year of production, in particular due to the volatility observed in the supply chain.
The Flea Challenge
The delivery of the first personal watercraft means that Taiga has finally solved its chip supply problems, at least in part. “It is certain that there are always challenges, a bit like in the rest of the industry in general with electronic components. »
The problem is linked to the availability of electronic chips – mainly made in Asia at the moment – and to the demand created during the pandemic in electronics and in the automotive sector for these chips, explains Samuel Bruneau.
“It’s sorting itself out, but it will take time for the industry to adjust. To buy a chip in the past, it took between two and six months. Today, it takes 12 to 18 months to obtain the same chip. You have to buy well in advance and plan well for the very long term. »
Samuel Bruneau still says he sees a very good boost in demand for Taiga vehicles in the current economic context. “There are no signs of slowing down on our side,” he said. Demand remains very strong. »
PHOTO ALAIN ROBERGE, LA PRESSE ARCHIVES
Taiga hopes to be able to deliver “a few hundred” electric watercraft by the end of the summer.
Combustion snowmobiles and personal watercraft are gas-guzzling vehicles, and with gas prices rising, Samuel Bruneau points out that electric vehicles like Taiga’s have appeal.
Expansion phase
The CEO of Taiga maintains that the financial situation of the company he leads remains “very good” and that there are no immediate needs to support the activities.
It is something that we continuously analyze. Of course, we are in an expansion phase. We are always open to various forms of financing to support growth.
Samuel Bruneau, co-founder of Taiga
For example, he would like to be able to increase credit lines to further increase inventory to prevent supply chain problems. “It’s one of the niches we’re looking at,” he said.
With the construction of the Shawinigan plant to begin next summer, Samuel Bruneau hopes that the day the LaSalle plant reaches its maximum capacity, production can begin in Mauricie. At full capacity, the LaSalle plant can produce nearly 8,000 units per year, while the Shawinigan facilities alone should be able to produce 60,000 units per year.
Taiga had 2,886 pre-orders (watercraft and snowmobiles) as of early April. The company generated its first income at the start of the year with its snowmobiles.
Taiga shares rose 8% to $4.00 on the Toronto Stock Exchange on Monday. The title was worth ten dollars on the same date last year.