The entire 1940 Indian line appears with the now-famous deeply valanced fenders. Production during the war years is mainly military and police vehicles. In 1945 the company is sold and consolidated into the Torque Engineering Company. Later, the company is divided, with manufacturing going to the Atlas Corporation and distribution to The Indian Sales Corporation. In 1948, Floyd Emde rides a 648 Scout to Indian's final Daytona 200 win.