Ski-Doo maker expands China network
BRP, the Canada-based maker of Ski-Doo snowmobiles, Sea-Doo watercraft and Can-Am off-road vehicles, will be the majority owner of a joint venture that will boost the company’s dealership network and operations in China.
BRP’s partner is Hong Kongbased Smooth Marine Equipment Ltd, which has been developing the company’s China network since 2002.
According to Pascal Bosse, corporate director for communications, public affairs and investor relations at Valcourt, Quebec, Canada-based BRP, his company will provide the majority of the working capital for the joint venture.
“In the US and Canada we have a direct network of dealers selling our products and services,” he said. “In China we use an indirect method which means we utilize Smooth Marine to set up a network of dealers for us. This venture will allow for an accelerated expansion of the China dealer network.”
Bosse said it’s too early to tell if the agreement, announced on June 12, will result in an increase in jobs at plants that make the company’s products in Canada and overseas.
BRP’s sales in China have grown 30 percent annually for the past three years. The joint venture also means dealers in the northern part of China will be able to sell BRP’s popular Ski-Doo line of snowmobiles.
“We are confident this agreement will help develop the power-sports industry in China. BRP’s offering is unique and fits well in the Chinese market,” YY Chen, owner of Smooth Marine, said in a statement.
The market for watercraft and all-terrain vehicles in China was very small before 2009. In 2012, BRP opened its first office in Shanghai.
BRP, formerly known as Bombardier Recreational Products Inc, has annual sales of over C$3 billion and employs more than 7,000 worldwide.
BRP believes the Sea-Doo Spark watercraft will have great potential in the China market.