Polaris Announces Plans to Separate, Sell Indian Motorcycle

Polaris recently announced that it has separated Indian Motorcycle into its own standalone business. A majority stake of the company will then be sold to a private equity firm named Carolwood LP. Polaris called the decision a “Sharpening of strategic and operating focus,” in the shocking mid-day announcement. Once the deal is finalized, Indian Motorcycle will operate independently of Polaris, continuing to sell motorcycles, parts, accessories, and gear through its global dealer network. Polaris will retain a small, undisclosed stake in Indian Motorcycle once Carolwood takes over in Q1 of 2026.

Search for New and Used Indian Motorcycles on the Cycle Trader marketplace. 

Mike Dougherty, Carolwood’s current CEO, is expected to retire once the transaction is complete, at which time Mike Kennedy will take the reins. Kennedy has previously been the CEO of a dealer group and Vance & Hines, and worked in several leadership roles at Harley-Davidson.

Polaris has been showing signs of trouble. Their 2024 financial report released in January did not paint a rosy picture, nor did the surprise announcement shortly after that the Indian FTR lineup was being discontinued. But even so, few seemed to anticipate this bombshell. According to the release, Indian Motorcycle generated approximately $478 million, or 7 percent of Polaris’ overall revenue, in the last 12 months of financial reporting which concluded on June 30, 2025.

“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths,” said Polaris Chief Executive Officer Mike Speetzen. “For Polaris, the sale will further strengthen our focus on the areas of our portfolio that offer the strongest growth potential and allow us to accelerate investments in key initiatives and create wins with customers and dealers. It also will unlock greater long-term value for Polaris and our shareholders, with immediate value creation that we expect will become increasingly meaningful over time.”

It is said that Indian Motorcycle will retain the majority of its team, including engineers, designers and staff, along with manufacturing resources. In addition to approximately 900 employees, manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minn., as well as the industrial design and technology center in Burgdorf, Switzerland, will make the transition to the new standalone motorcycle company. Given that the company currently has roughly 1000 employees, there will evidently be some redundancies.

“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders,” said Andrew Shanfeld, Principal at Carolwood. “We’re honored to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride. At Carolwood, we target iconic brands that we can passionately impact. Indian Motorcycle allows us to do just that.”