Polaris 2013 Annual Report Download - page 53

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consumers increased mid-teens percent for 2012 compared to 2011, with ATV unit retail sales growing mid-
single digits percent and side-by-side vehicle unit retail sales increasing more than 20 percent over the prior
year. North American dealer inventories of ORVs increased 26 percent from 2011, in support of continued
strong retail demand for side-by-side vehicles and incremental new market segments. ORV sales outside of
North America decreased six percent in 2012 compared to 2011, primarily due to weak demand in Europe.
Despite decreased sales outside of North America, we widened our market share leadership in ORVs
worldwide in 2012 compared to 2011. For 2012, the average ORV per unit sales price increased two percent
over 2011’s per unit sales price, primarily as a result of the increased sales of higher priced side-by-side
vehicle models.
Snowmobile sales increased seven percent to $301.7 million for 2013 compared to 2012. This increase is
primarily due to lower dealer inventory coming out of the 2012-2013 snowmobile season and success of the
model year 2014 new product introductions. Retail sales to consumers for the 2013-2014 season-to-date period
through December 31, 2013, increased nearly ten percent. Sales of snowmobiles to customers outside of North
America, principally within the Scandinavian region and Russia, increased 18 percent in 2013 as compared to
2012. The average unit sales price in 2013 decreased two percent when compared to 2012, resulting primarily
from increased sales of our value-priced snowmobiles.
Snowmobile sales increased one percent to $283.0 million for 2012 compared to 2011. This increase is
primarily due to increased market share in North America driven by the success of model year 2013 new
product introductions. Sales of snowmobiles to customers outside of North America, principally within the
Scandinavian region and Russia, increased nine percent as compared to 2011. The average unit sales price in
2012 was flat when compared to 2011.
Sales from the motorcycles division, which is comprised of Victory and Indian motorcycles, increased
12 percent to $219.8 million for 2013 compared to 2012. The increase in 2013 sales is due to the initial
shipments of the new model year 2014 Indian motorcycles. North American industry heavyweight cruiser and
touring motorcycle retail sales increased mid-single digits percent in 2013 compared to 2012. Over the same
period, Polaris North American unit retail sales to consumers increased over 20 percent, driven by an
unprecedented number of new product introductions in 2013, which includes three new Indian Motorcycle
models. North American Polaris motorcycle dealer inventory increased high-single digits percent in 2013
versus 2012 levels due to stocking of the new Indian motorcycles. Sales of motorcycles to customers outside of
North America increased three percent in 2013 compared to 2012. The average per unit sales price for the
motorcycles division in 2013 increased five percent compared to 2012 due to the increased sales of higher
priced Indian motorcycles.
Sales from the motorcycle division, which in 2012 was comprised primarily of Victory motorcycles, increased
46 percent to $195.8 million for 2012 compared to 2011. The 2012 sales increase reflects an increase of
Victory North American unit retail sales to consumers over ten times the North American heavyweight cruiser
and touring motorcycle industry percentage growth rate. North American Victory dealer inventory increased
over 2011 levels to support the sales increases, market share gains, new dealer additions and our new RFM
ordering system. The RFM ordering system allows dealers to place more frequent orders based on retail sell-
through along with encouraging display of each Victory model. Sales from the motorcycle division to
customers outside of North America increased over 50 percent due to increased market share gains of our
Victory motorcycles. The average per unit sales price for the motorcycle division increased two percent in
2012 compared to 2011.
In April 2013, we acquired Aixam. Aixam is based in France and manufactures and sells enclosed on-road
quadricycles and light duty commercial vehicles. Aixam complements our SV division, which also includes
GEM and Goupil vehicles. SV sales of $122.8 million in 2013 represents an increase of 177 percent compared
to 2012. The increase in sales over the comparable prior year periods is primarily due to the inclusion of
Aixam in our consolidated financial statements since it was acquired in April 2013. Also, both GEM and
Goupil experienced an increase in sales during 2013 compared to 2012.
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