Indian Motorcycle gets a refresh as it's riding its biggest success
Polaris made a bet on the motorcycle industry over a decade ago when it bought the historic Indian motorcycle brand. The Medina-based recreational vehicle giant knew it would be a long road to profitability when it took on a category long dominated by Harley-Davidson.
But the unit is riding high on Tuesday as it launches a refresh of its most popular motorcycle model, the Indian Scout. Last year, the business posted its first annual profit and is now consistently no. 2 in the industry in North America behind Harley, which is based in Milwaukee.
The motorcycle division started in 1997 with the Victory line before the 2011 Indian acquisition. But with the historic brand added, Polaris started expanding the unit. The motorcycles are in the On-Road unit, along with the three-wheel Slingshot and a few other small businesses. That unit now accounts for 13% of the company's $8.9 billion in sales.
Polaris is doing a refresh of its most popular motorcycle model, the Indian Scout. It's the biggest product launch in the Scout lineup for Polaris with design cues and models that callback to legendary Scout models that predate ownership by the Medina-based powersports company.
Polaris has been selling motorcycles since 1997. They initially made motorcycles under the Victory brand before they acquired the Indian Motorcycle brand in 2011. The historical roots of Indian go back to 1901 and soon Polaris was making motorcycles only under the Indian name.
"There is a strong future for Indian Motorcycle," said Mike Dougherty, president of On Road, Polaris.
The past decade was about serving loyal customers and building the critical mass of the business, from engineering to manufacturing and sales.
"This scale in our business combined with, in my opinion, the best and most exciting motorcycles in the market, Indian Motorcycle is well-positioned to continue gaining market share, expanding the brand in the U.S. and internationally, all while growing profitably," Dougherty said.
The motorcycle business has been consistently expanding its profit margin, Polaris Chief Financial Officer Bob Mack said in the company's fourth quarter earnings call.
"Gross profit margin for Indian Motorcycles was up nearly 600 basis points marking the sixth straight quarter expanding margin over 250 basis points," Mack said.
According to Polaris Indian's global market share has increased from 2% in 2014 to 13% in 2023. Much of the success of Indian is the Scout model, 100,000 of which have been sold globally in the last 10 years.
The Scout is a mid-size cruiser has been the best selling model in the Indian lineup. While its not the most profitable model in their lineup it is the introductory bike that builds brand loyalty and introduces riders to heavyweight bikes in the Indian portfolio that carry the highest profit margins.
To ensure the popularity of that model continues Polaris is launching the first big model redesign for Scout in 10 years.
The five new models of Scout start at an MRSP of $12,999 and go up to $21,999 for the re-release of the highest trim level - the 101 Scout, an iconic model brought back from Indian's rich history.
At times the Scout has been the #1 bike in the mid-size cruiser segment but the launch of the new Scout platform could solidify that position. "The goal is to be the leader in the mid-size cruiser segment," said Ola Stenegard, Indian's director product design in presentation to media.
The Indian motorcycle brand is a hit in more than the United States. According to Polaris they have more than 300 rider groups in 85 countries and have more Indian dealerships outside of the United States, 350, than inside 200.
Polaris makes most of their Indian motorcycles in Spirit Lake, Iowa and the engines in Osceola, Wis. They have a factory in Poland that makes its bikes for the European market and motorcycle plant in Vietnam to better serve Asia/Austraila/New Zealand.
Lloyd Greer owns Indian Motorcycle dealerships in Roger and St. Paul and has been in the motorcycle industry for more than 25 years. "Scout is an iconic looking brand with modern technology and a low seat height. It's easy to maneuver and handles great." Greer said. "Its great for female riders and those that are looking to buy their first new motorcycle."
Greer got a preview of the new models. "The new Scout is just phenomenal," Greer said. "I think its really going to hit a home run with that buyer."
