What Can We Expect From Golf Car Imports and Prices?

Most of us are aware of the significance presence of Chinese-built golf cars in the market. The majority by far are the result of a partially-assembled import, shipped to a final assembly facility in various locations in the United States.

For the most part these vehicles are participating in the LSV/PTV segment, not in the fleet segment (used on golf courses). Within the industry it is well-known that partially-assembled units greatly increased in volume in the wake of COVID crisis and the disruption of the supply chain for parts and accessories on which domestic manufacturers depended. The question now is whether the volumes that have been experienced over the past three or so years can be sustained.

Import trend since 2020

The table below lays out the trend in import growth and the clear dominance of China in this market. From an average level of about 18-19 thousand units in 2019 and 202, the numbers more than doubled in 2021, and from 61 thousand units in 2021 doubled more than double again to 142 thousand plus units in 2023.

As can be further seen, China dominates the market with a share of over 90% from 2019 to 2021 and over 80% for 2022 and 1023. In 2022 and 2023 Japan came on strong with over 13 thousand units in both years.

Golf Car Imports, 2019-2023 (Units) Source U.S. Department of Commerce

Implications of the import upsurge

The upsurge in imports has had the following significant results:

• Many new brands, associated with final assembly operations have come into the market;

• For consumers a greater variety of models and options to choose from;

• A shift rightward of the supply curve (meaning a greater number of u units at each price level;

• With new supplies outstripping current market demand, a decrease in prices at retail, which is good news for consumers, but not-so-good news for OEMs;

• A potential shake-out of companies, in all likelihood some of the new entrants.

Has the wave of imports crested?

Golf Car Imports, Year-to-Date (Units)

Certainly, the increase from 2022 to 2023 of 13.1% was quite a bit smaller than the leap of 106.1% from 2021 to 2022.  Yet, one could question whether another double digit gain would be possible, given the pressure on prices that has already been experienced.

Import data for the current year covers just three months, but a comparison between year-to-date figures is useful.  The table below shows a small overall decline in imports of about 1 thousand units through the first three months of the year, as compared to the same period in 2023.

Golf Car Imports, Year-to-Date (Units)Source:  U.S. Department of Commerce

Despite the small overall decrease, China’s imports rose to 17.3 thousand, a gain of 18.4%, and at a pace even greater than the 2022-2923 overall gain of 11.2%.  The big difference between the overall import numbers in the year-to-date table is Japan, which went from 3.5 thousand to zero, so far.

Thus, it is fair to say at this point, that the market may not have seen a tapering off, much less a cresting of the import drama.  Chances for another double digit gain in imports is certainly possible.  This despite the toll it would take on dealer margins and increased pressure for the weaker entrants to drop out.

Oversupply is not necessarily good news for consumers

High levels of supply can benefit consumers through a wider variety of options to choose from, as noted, and lower MSRPs, but it adds to the risk of the purchase. The risk is simply that the great buy you make, a vehicle with all the bells and whistles, may be from a company that has had to shut down. Even if the company stays in business, it may be reluctant to provide dealer support in terms of parts supply and dependable warranties.

Given the speed with which the internet can apprise would be purchasers with potential fault-finding data, a company struggling to remain viable could experience the “nail in the coffin” via negative reviews.

In summary…

What the next two quarters reveal about the market and its OEM is pretty difficult to predict. One clear factor to consider whether on the buy or sell side of market, is the increased risk that what appears to be an oversupply of vehicles brings to the table. The better news is that the market will definitely be growing, albeit in the short term not as rapidly as supply, and the longer term prospects are quite positive.

_________________________

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.

 

Certainly, the increase from 2022 to 2023 of 13.1% was quite a bit smaller than the leap of 106.1% from 2021 to 2022. Yet, one could question whether another double digit gain would be possible, given the pressure on prices that has already been experienced.

Import data for the current year covers just three months, but a comparison between year-to-date figures is useful. The table below shows a small overall decline in imports of about 1 thousand units through the first three months of the year, as compared to the same period in 2023.

 

Despite the small overall decrease, China’s imports rose to 17.3 thousand, a gain of 18.4%, and at a pace even greater than the 2022-2923 overall gain of 11.2%. The big difference between the overall import numbers in the year-to-date table is Japan, which went from 3.5 thousand to zero, so far.

Thus, it is fair to say at this point, that the market may not have seen a tapering off, much less a cresting of the import drama. Chances for another double digit gain in imports is certainly possible. This despite the toll it would take on dealer margins and increased pressure for the weaker entrants to drop out.

Oversupply is not necessarily good news for consumers

High levels of supply can benefit consumers through a wider variety of options to choose from, as noted, and lower MSRPs, but it adds to the risk of the purchase. The risk is simply that the great buy you make, a vehicle with all the bells and whistles, may be from a company that has had to shut down. Even if the company stays in business, it may be reluctant to provide dealer support in terms of parts supply and dependable warranties.
Given the speed with which the internet can apprise would be purchasers with potential fault-finding data, a company struggling to remain viable could experience the “nail in the coffin” via negative reviews.

In summary…

What the next two quarters reveal about the market and its OEM is pretty difficult to predict. One clear factor to consider whether on the buy or sell side of market, is the increased risk that what appears to be an oversupply of vehicles brings to the table. The better news is that the market will definitely be growing, albeit in the short term not as rapidly as supply, and the longer term prospects are quite positive.

_________________________

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.