Last July, the snowmobile and jet ski manufacturer Taiga Motors sought creditor protection. After layoffs in February, production stoppage in early April, and successive quarterly losses amounting to tens of millions, the Quebec-based manufacturer was living on borrowed time. However, at the time of publishing this article, we have learned that Taiga Motors will have a second life. Vita Power, an England-based company, is set to acquire the Quebec manufacturer.
But what explains Taiga Motors’ setbacks? In this article, I’ll review Taiga’s overly ambitious projects and the potential future of the company in the coming years.
Was a Tough Snowmobile Season to Blame?
Many blame the poor snow conditions of the last two years for Taiga’s downfall. Personally, I believe the problem runs much deeper. From the outset, the manufacturer aimed for an annual production of up to 80,000 units. This included a combined production of fully electric snowmobiles and jet skis. These forecasts were absolutely unrealistic, bordering on fanciful.
No Room in the Industry for Such Production Levels
Year in, year out, global snowmobile production ranges between 120,000 and 130,000 units annually. For jet skis, these figures hover between 100,000 and 130,000 new units each year.
Let’s assume, for a moment, that Taiga’s annual snowmobile production reached 10,000 units. To sell them, the manufacturer would have needed to capture nearly 10% of the market share from other manufacturers. Considering the average range of 100 km for electric snowmobiles, in addition to all the challenges related to charging stations along trails, this was far from realistic! Come on!
Deceived Government Lenders
Thus, from the start, Taiga Motors’ business plan was doomed to fail. What disappoints me most is that governments allowed themselves to be misled. In fact, they provided over $30 million in loans without conducting their own analysis of the snowmobile and jet ski markets.
The Future of Electric Snowmobiles
Don’t get me wrong: I believe that the advent of electric snowmobiles is viable, even desirable. However, not for the entire market. For certain applications, specific individuals, and in particular contexts, electric snowmobiles would be very suitable. Thus, a small portion of sales will likely be for electric units.
Over time, with new technological advancements, increased range, and easier access to charging stations, this type of snowmobile will gain market share. This integration into the market will be gradual, taking place over several years.
Taiga Should Have Focused All Its Efforts on Jet Skis
I believe Taiga Motors should have set aside its aspirations to develop a 100% electric snowmobile and focused on the electric jet ski market. This reflection is based on three main factors:
1. Designing and Producing a Snowmobile is Complex.
Even with the best intentions, designing a snowmobile requires great expertise. Apart from the motorization, it is necessary to develop a chassis, a robust and efficient suspension, a pleasant and safe driving experience, etc.
Major manufacturers can rely on the expertise of many engineers with vast experience in the field. Developing a jet ski, on the other hand, seems much more accessible to a young company. Indeed, the technological challenges are far fewer for developing a jet ski than a snowmobile.
2. Easier Access to Charging Stations.
The context of using a jet ski makes access to a charging station much simpler. For owners of waterfront properties, the starting and finishing point is often a dock designed for mooring the jet ski. By installing a charging station there, it becomes easy to plug in the jet ski upon returning from an excursion on the lake. Other charging points at marinas, for example, could also make using an electric jet ski much easier.
3. Global Year-Round Markets.
Snowmobiling is only practised in a few countries where snow cover is sufficient. Moreover, the snowmobile season only lasts a small part of the year. On the other hand, jet skiing is practised year-round in many countries.
These are just a few factors indicating that Taiga Motors should have focused its resources on this market.
The Future of Taiga Motors
Vita Power, the future owner of Taiga, specializes in designing and integrating electric motorization in the recreational or commercial boating market. Of course, this is fully compatible with Taiga’s jet ski division. The company even already has two models on the market: the Orca and the Orca Carbon.
According to what we’ve learned, Vita Power has committed to continuing Taiga Motors’ operations in Quebec. In fact, everything seems to indicate that operations could resume at the LaSalle plant. That said, it’s unclear whether the manufacturer will resume snowmobile production or focus solely on jet skis. It will be interesting to follow Taiga Motors’ activities over the coming months or years.
For more information, you can visit Taiga Motors’ website.
