Indian Motorcycles Sold in Shocking Deal; Polaris Ends Ownership After Surprise Carolwood Takeover

Indian Motorcycles, one of America’s most iconic motorcycle brands, has been sold by Polaris Industries in a stunning move that few in the industry saw coming. The Minnesota-based powersports giant announced on October 13, 2025, that it will spin off Indian Motorcycle into an independent company and sell it to private equity firm Carolwood LP.

The announcement marks the end of an era for Polaris, which revived Indian Motorcycle into a major global player after acquiring the historic brand in 2011. The deal will see Carolwood take full ownership, install former Harley-Davidson veteran Mike Kennedy as CEO, and oversee Indian’s next phase as a standalone company.

Polaris Confirms Sale of Indian Motorcycles and New Leadership

In a press release, Polaris CEO Mike Speetzen said the decision was made to allow both companies to focus more sharply on their strengths and future growth opportunities. “Polaris and Indian Motorcycle both stand to benefit from this deal,” Speetzen said. “It will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths.”

Under the terms of the deal, approximately 900 Indian Motorcycle employees will transition to the new company. Manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as the design and technology center in Burgdorf, Switzerland, will become part of the standalone business. Indian will retain most of its workforce, including engineers, designers, and production staff, though some roles within the larger Polaris ecosystem may be impacted.

Carolwood LP, known for its investments in the food, beverage, and sports industries, will lead Indian Motorcycle into its next chapter. The firm has appointed Mike Kennedy — a 26-year Harley-Davidson veteran and former CEO of RumbleOn and Vance & Hines — as CEO once current Indian president Mike Dougherty retires following the transaction.

“With its current product portfolio, global dealer network, and manufacturing capabilities, Indian Motorcycle is well positioned to succeed as a standalone company,” Speetzen added. “In Carolwood, Indian has a partner committed to building on its current momentum and supporting its next stage of success.”

Industry Impact and Future Outlook for Indian Motorcycle

The sale is one of the most significant shake-ups in the motorcycle industry in over a decade. Polaris had reestablished Indian as a powerful competitor to Harley-Davidson, introducing award-winning cruisers, baggers, and touring bikes that revitalized the brand’s legacy. The company’s decision to sell comes amid a challenging year marked by softer consumer spending, high interest rates, and shifting market conditions.

While Polaris has faced headwinds, its preliminary third-quarter results are expected to exceed guidance, driven by higher shipments and improved operational efficiency. The company says divesting Indian will allow it to concentrate on high-growth segments of its portfolio, including off-road vehicles and electric mobility initiatives.

For Indian Motorcycle, independence could accelerate innovation and allow more targeted strategies in a fiercely competitive market. With Kennedy at the helm, many industry analysts believe Indian will double down on its premium American-made heritage while exploring new segments such as electric motorcycles and global expansion.

However, questions remain about how the transition will affect Indian’s workforce and dealer network. While most of its 1,000+ employees are expected to remain, the statement that only a “majority” will transition suggests possible layoffs or restructuring. Dealers and customers are watching closely to see how Carolwood balances tradition with transformation in Indian’s next era.

The sale of Indian Motorcycles by Polaris is a turning point for both companies. As the brand embarks on a new independent future under Carolwood LP, its next moves could reshape the American motorcycle landscape in the years to come.

FYI (keeping you in the loop)-

Q1: Who bought Indian Motorcycles from Polaris?

Private equity firm Carolwood LP purchased Indian Motorcycles from Polaris. The deal includes manufacturing facilities, staff, and global operations.

Q2: Why did Polaris sell Indian Motorcycles?

Polaris said the sale allows both companies to focus on their strengths. It will help Polaris concentrate on growth areas while Indian pursues independent expansion.

Q3: Who will lead Indian Motorcycle now?

Mike Kennedy, a former Harley-Davidson executive and CEO of Vance & Hines, will become CEO after current president Mike Dougherty retires post-transaction.

Q4: What happens to Indian Motorcycle employees?

About 900 employees will move to the new company. Most engineers, designers, and manufacturing staff will remain, though some positions may be affected.

Q5: Will Indian Motorcycle change its product lineup?

Details haven’t been announced, but Kennedy is expected to build on Indian’s momentum. Expansion into new markets and technology investments are likely.