Polaris shuts Vietnam plant after Indian Motorcycle sale
Polaris is moving to divest its motorcycle manufacturing plant in Vietnam less than two years after the facility was officially inaugurated, following the sale of a majority stake in Indian Motorcycle.
The US-based powersports company has committed to a plan to sell its Vietnam manufacturing facility as part of its exit from the Indian Motorcycle business. Polaris completed the separation of Indian Motorcycle and sale of a majority stake to private equity firm Carolwood LP on February 2, 2026.
The move marks a sharp turnaround for the Vietnam operation. Polaris officially inaugurated the plant at Ba Thien 2 Industrial Park in Vinh Phuc province in September 2024, following a reported USD 36 million (around PHP 2 billion) investment.
At the time, the 12-hectare facility was presented as a major expansion of Polaris’ motorcycle manufacturing operations in Vietnam. The plant was designed to produce up to 10,000 motorcycles and 30,000 large-displacement motorcycle engines annually, primarily for export, while creating around 600 local jobs.
Polaris’ own financial filings now classify the Vietnam factory as part of a disposal group alongside the Indian Motorcycle business. The company said it had committed to a plan to divest the manufacturing facility after agreeing to sell a majority interest in Indian Motorcycle.
The plant’s final production run had already ended earlier in 2026, according to Matt Kantrud, managing director of Polaris Vietnam. In a post, Kantrud said the facility had been conceptualized in late 2022, commissioned in 2023 and operated for more than two years before production ended.
He attributed the premature end of the operation to global trade dynamics and the sale of Indian Motorcycle.
The shutdown comes after a difficult period for Polaris’ On Road business, which includes motorcycles and related products. The segment’s sales fell 6% in 2025 to USD 926.5 million from USD 987.8 million the previous year, according to the company’s filings.
