A significant shift is underway in the American motorcycle industry as Polaris Inc. has announced the sale of a majority stake in Indian Motorcycle to Carolwood LP, a Los Angeles-based private equity firm. This move signals a new chapter for Indian Motorcycle, separating it into an independent company for the first time since Polaris revived the brand in 2011. The transaction is expected to be finalized in the first quarter of 2026. Polaris will retain a small equity position in Indian Motorcycle after the deal is complete.
Adding to the intrigue, Carolwood has appointed Mike Kennedy as the new CEO of Indian Motorcycle. Kennedy, a 30-year veteran of the motorcycle industry, brings a wealth of experience from leadership roles at Harley-Davidson, Vance & Hines, and RumbleOn. His extensive background suggests a strategic direction that could see Indian Motorcycle further challenge Harley-Davidson's dominance in the American V-twin market.
Polaris's decision to sell a majority stake in Indian Motorcycle comes as the brand has contributed approximately $478 million to Polaris' revenue, accounting for 7% of the total revenue for the twelve months ending June 30, 2025. Despite this contribution, the sale is projected to increase Polaris' adjusted EBITDA by $50 million and raise earnings per share by $1.00 annually. This move allows Polaris to sharpen its focus on off-road vehicles, snowmobiles, and marine products, where it sees stronger growth potential.
For Indian Motorcycle, the separation promises a dedicated focus and the opportunity to operate with greater agility. Carolwood, known for transforming iconic consumer brands, aims to preserve Indian's heritage while supporting its growth as an independent company. "Indian Motorcycle has defined American motorcycling for over a century," said Adam Rubin, Principal at Carolwood. "Mike Kennedy's leadership will be instrumental in ensuring that legacy thrives for the next hundred years".
Approximately 900 employees, including those in engineering, design, and manufacturing, will transition from Polaris to the new standalone Indian Motorcycle company. The company will continue to operate its manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as its industrial design and technology center in Burgdorf, Switzerland. The brand's global dealer and service network will also continue to operate without interruption.
While Indian Motorcycle has been re-established as a major player in the global motorcycle market under Polaris' ownership, it has faced challenges in recent years. After hitting an all-time sales record in 2021, sales have declined in the following three years. In the first half of 2025, global sales decreased by 2.1%, projecting a fourth consecutive yearly decline. The company faces increasing competition from both low-cost and premium brands.
The change in leadership and ownership could inject new life into Indian Motorcycle, potentially sparking a new era of innovation and competition in the American motorcycle market. With a veteran like Kennedy at the helm and the backing of a firm known for brand revitalization, Indian Motorcycle may well be positioned to more aggressively challenge Harley-Davidson and capture a larger share of the market.
