Polaris Sells Majority Stake in Indian Motorcycle

Polaris sells its majority stake in Indian Motorcycle to Carolwood LP, allowing the historic American brand to become an independent company in 2026 while retaining its workforce, facilities, and dealer support network.

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In a move that reshapes one of America’s oldest motorcycle brands, Polaris Inc. has agreed to sell a majority stake in Indian Motorcycle to Carolwood LP, a Los Angeles–based private equity firm. The deal, expected to close in the first quarter of 2026, will see Indian operate as a stand-alone company for the first time since its revival under Polaris ownership more than a decade ago.

A Strategic Split

Polaris will retain a minority interest, maintaining a link to the brand it successfully resurrected in 2011. Mike Kennedy, a former Harley-Davidson executive, has been appointed CEO of the newly independent Indian Motorcycle. It signals an emphasis on leadership continuity and industry expertise.

Over the twelve months ending June 2025, Indian contributed more than $478 million in revenue, accounting for about seven per cent of Polaris’ total earnings. The divestment is expected to boost Polaris’ EBITDA by approximately $50 million and increase its earnings per share by about $1. This reflects a sharper financial focus on its core powersports and off-road divisions.

Transition Without Disruption

Despite the change in ownership, Indian’s operations will remain steady. More than 900 employees across engineering, design, and manufacturing will stay on, and the brand’s production facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as its design and technology hub in Burgdorf, Switzerland, will continue normal operations.

Dealers and customers can also expect business as usual. Indian Motorcycle will maintain its existing sales, service, and support network, ensuring ongoing availability of motorcycles, parts, accessories, and apparel throughout the transition.

Carolwood’s Role: Stability First

Carolwood LP lacks direct experience in the motorcycle industry but has built a reputation for guiding large subsidiaries toward independence. The firm invests across real estate, hospitality, media, and sports, and plans to focus on maintaining operational stability before introducing major strategic changes.

A Pivotal Moment for an American Icon

Indian achieved its first profitable year under Polaris in 2023 but faced headwinds in 2024 amid broader market slowdowns. The sale marks both an end and a beginning, the conclusion of Polaris’ stewardship and the start of Indian’s next chapter as an autonomous brand.

Riders and industry observers are watching closely. Private equity ownership often raises concerns about cost-cutting or short-term goals, but for now, Indian’s focus remains clear: to continue building motorcycles that honour its heritage while evolving for the modern era.