Looking like its rival, Indian develops line of performance parts

Indian this week announced the formation of its new ARO (which stands for American Racing Operations and, we're told, is to be pronounced "arrow") performance division. Starting with exhausts and intakes, the division could eventually branch out into supporting race teams or even providing race bikes. For anyone familiar with that other U.S. motorcycle manufacturer based in the Midwest and its Screamin' Eagle line of performance parts, this won't sound unusual. But what I think is really interesting is how Indian is not just matching one of Harley-Davidson's product lines, but is also taking a similar corporate strategy to the one we just saw unveiled by new Harley-Davidson CEO Artie Starrs in the company's "Back to the Bricks" strategic plan.

Indian CEO Mike Kennedy noted that the two founders of Indian were racers (though he didn't mention that they started out racing bicycles), and while the first product is, predictably, a slip-on exhaust, he said that "it represents the first in what we expect to be a long line of performance products we will develop."

In a recent podcast interview, Kennedy said the ARO plan was already being developed before he came on board as CEO when parent company Polaris announced plans in 2025 to sell off Indian, a deal that closed in February of this year. But it was one he readily adopted.

"This was an idea that was just on paper back in September, prior to us announcing (the sale) and we really couldn't move on it with energy until we got to close" the sale, Kennedy said. "But I love this idea. As soon as I saw it I said 'Brilliant idea'."

I see two strategic moves in Indian's plans. First, it's a way for the company to try to capitalize on its racing success, something it has had difficulty doing. Indian dominated American Flat Track for a while and brought out the FTR 1200, a "street-tracker" — meaning a street bike that was styled like a flat-track race bike — that many said they loved but fewer actually bought. Indian tried shifting the style more toward the street and less like a flat-track bike, but eventually gave up and discontinued it in late 2024. Those AFT trophies might have looked good on the shelf, but they didn't bring Indian tangible benefits where it really counts for any corporation: the bottom line.

Now the company is all-in with MotoAmerica King of the Baggers racing, which appears to be more promising. With Vance & Hines — a company known for aftermarket exhausts and performance products, and the place where Kennedy was previously CEO — running the J&P Cycles/Motul/Vance & Hines Factory Indian team this year, ARO products can be billed as a result of what Indian is learning from racing the kinds of motorcycles its customers mostly buy. Kennedy is already touting that tie-in. If the team continues its current success, maybe Indian can finally turn on-track victories into corporate revenue.

The other strategic move here echoes what we heard from Starrs when he unveiled Harley-Davidson's new strategic plan. One thing he talked about was the importance of Harley-Davidson making money not just from selling a new motorcycle — day one of the motorcycle's life — but from the entire lifespan of that bike. That means an increased emphasis on selling parts and accessories, being involved in sales of used motorcycles, and recognizing the importance to dealers of the revenue from servicing those motorcycles. Indian is following suit, not just wanting to sell you a new Indian Challenger, but also some parts to up its performance.

There may be new leadership at Harley-Davidson and new leadership and new ownership at Indian, but the two main U.S. motorcycle manufacturers aren't veering off their similar courses.