State of the Industry at the Beginning of the New Year

Entering 2026 the industry and market for golf car type vehicles is digesting changes which have dramatically affected supply side costs, and at the same time, can look forward to significant opportunities for growth. In the first instance, governmental policy changes will have an important impact on relative competitiveness. Secondly, organic growth in street legal vehicles continues, while major growth opportunities could open up even beyond this.

Summary of policy changes that have affected relative brand competitiveness in the marketplace

It is clear that the policy changes, relating to countervailing duties and anti-dumping penalties (CVD/AD), are having an impact on golf car imports:

• Impending penalties during the latter half of 2024 led to a significant run-up of imports, causing an overload of inventories entering 2025;

• The preemptive imports themselves led to a decline in imports throughout 2025;

• Inaddition, the size of the CVD/AD penalties are likely to have a continuing negative impact on imports from China;
• As a result, Vietnam has displaced China as the principal country of origin for golf car imports.

Wiley Rein LLC, the law firm representing the American Personal Transportation Vehicle Coalition, consisting of Club Car and E-Z-GO Textron, announced the final affirmative findings of the Department of Commerce and U.S. International Trade Commiossiona and the wide range of penalties.

“…the U.S. Department of Commerce [has] determined that Chinese LSPTV imports are being unfairly traded, meaning that AD/CVD orders will now be issued on imports of these Chinese vehicles. Antidumping duties will be imposed at rates ranging from 119% to 478%, and countervailing duties will be imposed at rates between 31% and 679%.”

–Press release from Wiley on July

With rates at the higher range implying additional costs of as much as five times the landed value, vehicle prices would be in the range of $12-$15,000 before any mark-up at retail. It would appear that losses will be inevitable at the importer/manufacturer level or at the dealership, or both, at least in the short run.

In its leading report on the industry, Small Vehicle Resource analyzes the rate of excess inventory sell-off and the price decreases involved, based on import data and demand elasticity parameters. This report is now available and can be ordered.

Penalties applied selectively to individual Chines manufacturers

It should be noted that the CVD/AD penalties are applied selectively to individual Chinese manufacturers, depending on the findings of the ITC and Commerce. Thus, brands will also be selectively affected.

The table on the next page aligns Chinese manufacturers with the brands involved at the penalty rates applied. There are 12 Chinese manufacturers listed and numerous brands widely sold in the U.S, including ones that have been in business quite a while, as well as relative newcomers.

Beyond the short run difficulties presented by the imposed penalties, there are positive indicators for growth.

Positive growth opportunities

There are at least five factors at work that indicate a strong positive growth trajectory going forward:
1) Upgrades—Upgrades keep coming further equipping vehicles with more attractive features, both in operating benefits and automotive-type accessories. Thus, the value per dollar keeps climbing and will offset needed price increases over the long term.

2) Strong grass roots growth in street legal usage—street legal use of golf car-type vehicles continues to grow and spread across the country. A recent compilation of street legal-friendly municipalities was notable in that the sample numbering over 200 extended over virtually all weather zones of the country. This also suggests that an upgrade of a hard shell enclosure would do much to boost this trend.

3) Evolution of the SDD market—There is growing evidence that GCT vehicles are a viable alternative to conventional vehicles in tasks and errands involving short distance drives. A substantial majority of vehicle movement, in terms of number of drive outs and in terms of total mileage, is accounted for by thrips of five miles or less—this according to DOT statistics. Thus, the short distance driving (SDD) market is ready made for upgraded and accessorized LSVs

4) Aggressive promotion in the last mile delivery segment—While there is grass roots growth in street legal use of GCTs, so far, little has been done to exploit the opportunities in last mile delivery. Here the European market has progressed much ahead of U.S. development. It is highly likely that the LMD segment will substantial growth on the U.S. side, as well. It will take, however, implementation of aggressive marketing strategies at the corporate level to make this happen.

5) Advent of an effective trade association to promote and enhance the interests of dealers, suppliers, and manufacturers—Introduced at the 2025 PGA Show last January, the Low Speed Vehicle Dealer Association has been an immediate success, enjoying growth in both dealer membership and sponsors. Given the increase in street legal golfcar-type vehicles, and the anticipated growth in this segment, the need for an overarching trade organization, promoting the interests of the industry as whole, is paramount. The LSVDA is meeting this need—from the Association’s mission statement:

We aim to promote the professional use and personal enjoyment of low speed vehicles as a sustainable, efficient, and enjoyable mode of transportation, and to lead the way in the development and adoption of innovative technologies and best practices within the low speed vehicle industry.

Learn more bout the LSVDA at www.LSVDA.com.

Opportunities overshadow near term uncertainties

In summarizing the state of the industry at this juncture, and for strategic planning purposes, it can be said that the opportunities for growth and expansion clearly outweigh near term uncertainties.

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Contact the Author: Steve Metzger at smetzger@smallvehicleresource.com.  Or check out our website at www.smallvehicleresource.com, where you will find an extensive database of vehicle models and can make side-by-side comparisons of vehicles based on a full set of specifications.