Indian's export business in the British Isles was dealt a crippling blow in the Spring of 1925 when the Chancellor of the Exchequer levied a 33% import tax against all foreign motorcycles. This drove the retail prices so high that the importation of American machines ceased almost overnight. Billy Wells valiantly stayed in business for a few months, but with no relief in sight he regretfully ceased operations after sixteen profitable and eventful years.
As there were numerous older Indian machines in use as well as many postwar examples, including a number of Princes, the factory maintained a small spare parts outlet in London for some years. The actual repair and maintenance of Indians was then carried on in a number of small specialist shops operated by enthusiasts, a few of whom were still active until the beginning of World War II.
Indian continued to enjoy substantial popularity in Australasia, however, as import levies were as yet not unfavorable. A Scout won the West Australia Reliability Trial against a large field of heavier machines. George Lambert also won the 1,000cc class of the flying mile championship in New Zealand on a 61 cubic inch Chief.
In 1925, Indian topped all comers in Australian competition, winning the solo and sidecar championships, the Victoria Junior TT race, the Australia Heavyweight Championship, the Tasmanian Sidecar Championship, as well as the Adelaide to Melbourne Solo Record.
Late in the season, Paul Anderson set a new record on an eight-valve special at Sellicks Beach, South Australia, recording 125mph.
Indian meet Excelsior challenge with a 750cc Scout "45"
The Excelsior Company scooped the entire industry with the introduction of a 45 cubic inch version of their 500 V-twin. They had formerly offered a two-model range in the post war years, consisting of a 61 inch twin, together with the perennially popular Henderson four, which had been continued with only detail changes since redesigned by Arthur Lemon in 1919. Lemon had also redesigned the 61 inch twin in 1921, along Indian Scout Lines, with helical gear primary drive and unit construction of the engine and gearbox. When the 45 inch model proved to be a good seller, the 61 inch model was made available only on special order.
Not to be outdone, President Weschler directed Franklin to design an engine of similar capacity as an optional fitting to the still popular 37 inch Scout. This was first offered to the public the following Fall, for the 1927 season.
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