The only gray area is that Polaris, the parent company of Indian Motorcycle, has not disclosed Indian Motorcycle sales, but the news is positive.
Polaris, the parent company of Indian Motorcycle, reported 40% more motorcycle sales in the third quarter of 2020, which is July through September. Overall, powersports retail sales grew 15% year-over-year, and powersports include boats, snowmobiles, motorcycles and all-terrain vehicles, all segments in which operates Polaris. The upside is that Polaris motorcycle sales, which includes a large chunk of Indian Motorcycle sales, have shown tremendous growth and even surprised Polaris management.
“We weren’t so optimistic about the bikes. But what has become evident is that biker groups are popping up everywhere,” said Michael Speetzen, CFO of Polaris. Apparently, horseback riding groups have become more common in the face of the COVID-19 pandemic, as it represents a way to hang out with friends in a socially distant way. New bikes represent 10 percent of Polaris sales.
“Demand remained strong to start the fourth quarter and we expect our sales and earnings momentum to continue for the remainder of the year. This pushes our expectations for overall business performance to exceed our targets pre-Covid-19 for 2020, which demonstrates our confidence in the team to accelerate production as we manage ongoing challenges, ”added Scott Wine, President and CEO of Polaris Inc.
Also read: Harley-Davidson reports third quarter net income of $ 120 million
Harley-Davidson also had its strongest third quarter since 2015, despite declining sales volume. As revenue and sales declined for Harley-Davidson, net profit increased by 39%, seen as the effects of The Rewire strategy described by CEO Jochen Zeitz to focus on reducing production and costs. , and to empty existing stocks.
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