Polaris closes another factory, this time in Vietnam

In a surprise move, the American group Polaris sold its motorcycle division, Indian, to the investment company Carolwood in October 2025. Polaris explained the sale matter-of-factly, citing a need to focus on its ATV, snowmobile and watercraft divisions, as well as the Slingshot three-wheeler. At the time, Indian accounted for 7 per cent of Polaris’s group revenue; its contribution to group profit was not disclosed.

With the sale of the majority stake to the Los Angeles-based investment firm Carolwood, Indian became an independent motorbike brand; Polaris continues to hold a minority stake.

Back in January 2026, Polaris announced the closure of its factory in Osceola, Wisconsin, with effect from the end of 2026. The factory manufactures engines and other components for Polaris vehicles, including engines for Indian motorcycles. 200 employees will lose their jobs.

Polaris has now announced the closure of its engine factory in Vietnam. This factory in Phu Tho province (45 km from Hanoi) began production in 2023; at its peak, it produced 10,000 motorbikes and 30,000 engines in the higher displacement class.

In addition to the organisational challenges associated with the reorganisation following a change of ownership, Indian is struggling with fluctuating customs tariffs, particularly in the key Canadian market as well as in Europe. Since the sale to Carolwood, Indian has not launched any new models, apart from three specially painted limited-edition models to mark the brand’s 125th anniversary. According to the market research firm Motorcyclesdata, Indian sold 9,707 motorbikes between January and July 2026, representing a slump of around 42 per cent. By way of comparison: in its peak year of 2021, Polaris sold 34,481 Indian-branded motorbikes.