Mexico Sees Growth in Indian Auto Parts, Motorcycle Production

Indian automotive companies are expanding their footprint in Mexico, concentrating on the auto parts and motorcycle manufacturing segments rather than complete vehicle assembly.

Rane Madras invested US$31 million in Aguascalientes to produce steering systems and suspension components, while Brakes India Limited announced a US$70 million foundry in the state in March 2024. According to Prasad Shinde, economic and commercial officer, Indian Embassy in Mexico, around five more Indian companies plan to enter Mexico’s automotive supply chain in the short term.

“The main focus remains on components,” Shinde said, highlighting that firms seek to integrate into established clusters in the Bajio region and northern Mexico, where leading global assemblers operate.

India also exports fully built vehicles to Mexico, including Nissan’s Magnite, Volkswagen’s Virtus and Taigun, and Suzuki’s Fronx, Grand Vitara, and Baleno. Between January and August 2025, Mexico imported 63,827 units from India, making it the country’s fourth-largest automotive supplier, according to INEGI.

Motorcycle makers TVS and Bajaj assemble locally with imported parts, while Hero MotoCorp entered through a distribution partnership with Grupo Salinas, a deal expected to expand.

Shinde noted that companies are watching Mexico’s proposal to raise tariffs on countries without trade agreements, including India. 

According to BMI, a Fitch Solutions company, India and Mexico led global automotive investment in the first half of 2025, securing 22 and 34 projects respectively. Despite stable global project volumes at 277, disclosed investments reached US$55.2 billion, underscoring both nations’ growing roles in the global supply chain.