Polaris sees more competition in all-terrain vehicle space

Polaris India, the local unit of US-based Polaris Industries, which sells all-terrain vehicles (ATVs), expects the market for such vehicles to expand in the country as more companies look at entering the market. 

The company which started selling ATVs and off-roaders in 2011, has sold 700 vehicles in the last two years.

Being the only brand selling ATVs in the country, the company expects a growth 25% annually.

“There are some small-time importers. The market for such vehicles is around 1,000 units on an annual basis,” said Dubey.

Experts believe that with the market for ATVs growing in the country, more competition from established brands is expected to increase going ahead.

“Expect some of them to enter in the next few years. Companies such as Honda and Yamaha have been enquiring about potential market,” said Dubey.

ATVs is defined as a motorised off-highway vehicle, designed to travel on four tyres. In India, such vehicles are sold in sectors such as agriculture, tourism, disaster management and government departments for specific applications. Polaris is betting on government orders for its ATVs. Gujarat police currently is using Polaris vehicles to man coastal areas. The company is also in talks with other state governments.

Polaris currently imports its vehicles, given the small market size.

Asked about manufacturing vehicles in India, Dubey said, “Right now its not feasible. We will consider if the market grows.”

Dubey said quadricycles are allowed as a category, then such vehicles can be sold under this category, which would further help in boosting demand.

The firm has 15 dealers. It has also started Polaris experience zones, which are built by third-party entrepreneurs.