Polaris Industries includes both Indian Motorcycle and the three-wheeled motorcycle, Slingshot, within its 'motorcycles' segment, and for the first three months of 2021 (January to March, 2021), the company reports a 31 per cent increase in motorcycle sales revenue. Motorcycle sales, including parts and accessories, accounted for $165.6 million in revenue, up from $126.6 million during the same quarter of 2020. The motorcycle segment had a gross profit of $8 million compared to a loss of $1 million in the first quarter of 2020.
In North America, Polaris reported an increase in Indian Motorcycle sales of 60 per cent in Q1 of 2021. And the good news is also that, the mid-to-heavyweight motorcycle segment where Indian Motorcycle has its bikes in, posted growth of only in the mid-30 per cent levels, compared to Indian Motorcycles' over 60 per cent growth in the home market and Canada. While the first quarter numbers are positive, there are some concerns going forward to keep the momentum going. Dealer inventory levels are below optimum levels, and the company estimates a 40 per cent reduction in inventory levels, compared to the first quarter of 2020, as supply chain constraints and logistical issues limit manufacturing.
According to Polaris, the company is trying to off-set supply chain delays by adjusting manufacturing capacity and altering logistics to optimize the flow of parts. However, the company expects dealer inventory returning to targeted levels only by 2022. Full year 2021 sales are expected to be up 18 per cent to 21 per cent over the previous year