If there is a global ATV shortage, then it’s likely that Honda is the first company to feel the effects. Other manufacturers are likely to follow. Though efforts to mitigate the problem are underway in the US and China, it’s unclear when those measures will reach the consumer. Until they reach the consumer level, however, manufacturers will continue to face challenges. To learn more about the global ATV shortage, keep reading!
Demand outweighs supply
The ATV-UTV market is experiencing a growth spurt this year, as consumers flock to the off-road community during a global shutdown. A spike in demand has driven pre-owned prices even higher, while limited inventory makes buying new models difficult. The ATV-UTV segment should enjoy a long runway, as demand will continue to outstrip supply. Here are the key factors to keep in mind as the ATV-UTV market continues to grow.
The North American all-terrain vehicle industry is one of the most advanced in the world, with the US and Canada accounting for nearly all of the industry’s production in 2019. Both countries contribute over half of the world’s total all-terrain vehicle manufacturing, and Canada recently signed a free trade agreement with its neighbors to support its automotive industry. However, this demand isn’t a guarantee that the market will continue to grow.
Suez canal blockade
A cargo ship stuck in the Suez Canal is costing $400 million an hour to transit. The blockade has impacted supply chains in a variety of sectors. The Ever Given cargo ship has blocked hundreds of freighters from passing through the canal. Even more, the blockade has affected the global LNG market, as around 8% of LNG travels through the Suez Canal. The blockade has pushed up demand for ATVs and quad bikes, as well as the cost of transportation.
The Suez Canal is the main transportation route to Europe and the United States. Oil and petroleum products passing through it represent about 10% of all seaborne oil. If the Suez Canal is closed, these products would be delayed and this would increase the risk of attack on oil facilities. The blockade could also create a window of opportunity for non-state actors to take advantage of this situation by launching attacks.
Global coronavirus pandemic
The global coronavirus pandemic and ATV shortage may have a negative impact on the ATV industry, including manufacturers and retailers. The virus has already prompted concerns about safety and the reopening of the hospitality industry. Yet, many questions remain about the effects on the ATV market. While the virus has already killed several people, it is possible that other deadly diseases may follow.
Tesla’s plans for electric ATV
Elon Musk has revealed his plans to create an electric all-terrain vehicle. At the unveiling of the Cybertruck, he showed off a prototype Tesla ATV. The rider steered the four-wheel all-terrain vehicle, which featured big, knobby off-road tires, up a ramp and into the truck’s bed. The company is offering the ATV as an option for the Cybertruck, but has trademarked the name Cyberquad.
The ATV isn’t quite ready yet, but you can still order one today. It’s unlikely to arrive before the holidays, though. However, you can expect it to start shipping in two to four weeks. The futuristic ATV is based on the design of the Tesla Cybertruck. It has a steel frame, a cushioned seat, adjustable suspension, rear disk braking, and LED lights on the front and back. Unlike the Cybertruck, the Tesla ATV will have to be assembled.