The results of the Q1 2022 Powersports Business/BMO Capital Markets Dealer Survey have been released, reflecting a distinct change in sales. For the third consecutive quarter, 27 percent of responding dealers indicated their business was below plan, 12 percent were ahead of plan and 61 percent were on plan.
The February CDK Lightspeed Dealer Management System report showed a bit of a bright spot with major unit sales up 13.4 percent versus February 2021. Revenue also increased 11.3 percent as compared to the three percent gain in January 2022. But these numbers are a far cry from the roaring revenue generated during the height of the pandemic.
The primary culprit of these below-plan numbers is lack of new unit inventory. The supply chain continues to wreak havoc on manufacturing, prompting OEMs to ship bare bones chassis to dealers in order to have something to fill the showroom. The continued microchip shortage coupled with rising inflation and gas prices is impacting everything from gauges to sensors for new units. As these items trickle in, dealers are quickly installing parts to move completed units out the door.