Grupo Salinas Invests US$27 Million to Expand Italika Production

Grupo Salinas has invested over MX$500 million (US$27.6 million) in launching its second motorcycle assembly plant in Mexico, Ensamblika Guadalajara, located in El Salto, Jalisco. The facility will assemble motorcycles from Italika, Hero, and Benelli, focusing on meeting growing demand in northern Mexico while offering more affordable pricing.

"This new assembly plant is a key part of Italika’s growth strategy, expected to boost the business by 30%," said Ricardo Salinas, CEO, Grupo Salinas, owner of Italika. The company also plans to expand further with a third plant in southeastern Mexico and aims to enter Latin American markets.

The Ensamblika Guadalajara plant is expected to generate more than 1,200 direct jobs. "This investment not only brings direct jobs but also strengthens local industries, including transport, logistics, engineering, and services," said Alberto Tanus, CEO, GS Motos and Presta Prenda. The plant will also foster growth for small and medium-sized enterprises (SMEs) by integrating them into the supply chain.

"We expect a modest annual growth rate of 10%, so we must focus on maintaining a steady supply chain," said Jorge García, Operations Director, GS Motos. He also highlighted efforts to increase local value, with five key Mexican suppliers now involved in the production process. Currently, parts are sourced from China, with suppliers in Shanghai shipping components to Mexican ports in Lazaro Cardenas and Manzanillo, requiring 21 to 23 days to reach the assembly plant.

Spanning 71,000 square meters, the Ensamblika Guadalajara plant features two state-of-the-art production lines and is designed to assemble up to 500,000 motorcycles annually, producing 31 different Italika models. It serves 16 states across Mexico and benefits from its strategic location near the Port of Manzanillo, which helps reduce delivery times. Italika also operates a plant in Toluca, State of Mexico, which has been in operation for 20 years.

"The demand for motorcycles in Mexico continues to grow, prompting us to expand our assembly capacity," Salinas added.