While cutting costs in its home market, Polaris Industries is gearing up in emerging markets like China. The all-terrain vehicle (ATV) and motorcycle maker plans to open 25 dealerships in China in the next two years, top executives said Wednesday.
CEO Scott Wine told the Global Times that China would be the company's "key strategic market in Asia," though its sales in the country at present are almost zero. Wine believes China's burgeoning auto market will create a culture conducive to the growth of power sports.
Polaris entered China at the end of 2009, teaming with Beijing United Automobile Motorcycle Manufacturing (BAM), an affiliate of Beijing Automobile Industry Holding.
At the moment, Polaris is offering only ATVs and side-by-sides, which are two- or four-person off road vehicles, through BAM. The two product categories account for two-thirds of the company's total global sales. Wine said Polaris will eventually expand its offerings in China to include farm and construction equipment.
"We will open five dealerships this year and 10-20 more in 2011. Chongqing, Beijing, Shanghai, Inner Mongolia and Shanxi, where off-road cultures, geographical conditions and residential incomes are good, will be our top choices," said Zhou Yunfei, general manager of the Asia Pacific region for Polaris.
Polaris announced in late May it will sell or close a Wisconsin manufacturing plant and move production to a new one in Mexico in a bid to cut costs and quicken product deliveries. The company's full year 2009 sales decreased 20 percent to $1.56 billion.
