Bajaj Motodrive Invests US$145 Million in Toluca Plant

Summary: India’s Bajaj MotoDrive will invest US$145 million to build a motorcycle assembly plant in the Toluca Valley in the State of Mexico, expanding production capacity to nearly 500,000 units annually and strengthening Mexico’s role as a regional hub for two-wheel vehicle manufacturing. The project reflects rising domestic demand for motorcycles and supports nearshoring-driven supply chain development in Mexico’s automotive and mobility sectors. It also aligns with broader economic cooperation initiatives between Mexico and India to expand investment and technology collaboration in manufacturing, digital services and pharmaceuticals.

Indian motorcycle manufacturer Bajaj MotoDrive announced a US$145 million investment to build a new motorcycle assembly plant in the Toluca Valley in the state of State of Mexico, a project expected to produce nearly 500,000 units annually and generate 2,500 direct jobs and up to 6,000 indirect positions. The announcement was led by Delfina Gómez Álvarez, Governor, State of Mexico, who said the investment strengthens regional value chains and reinforces the state’s position as one of Mexico’s key manufacturing hubs.

“Today the two-wheel giant from India renews its confidence in our state,” Gómez said during the presentation. “This US$145 million investment for a motorcycle assembly plant represents an important pillar for the industry in Mexico and great news for the Toluca Valley.”

The facility will incorporate advanced manufacturing technology and significantly expand the company’s production capacity in Mexico as demand for motorcycles continues to rise in the domestic market.

According to state authorities, the plant will have the capacity to produce close to half a million motorcycles per year, supporting Bajaj MotoDrive’s growth strategy in the country. Officials also highlighted the project’s employment impact. The new facility is expected to create 2,500 direct jobs and up to 6,000 indirect jobs, strengthening economic activity in the Toluca region and surrounding municipalities.

The announcement was attended by business and diplomatic representatives, including Pankaj Sharma, India’s Ambassador to Mexico. Gómez said the investment further reinforces the State of Mexico’s role as a key destination for automotive and motorcycle manufacturing. Meanwhile, Laura González, Minister of Economic Development, State of Mexico, said the size of the local market also supports the sector’s growth.

According to data from INEGI, more than 1.5 million motorcycles circulate in the State of Mexico, representing over 16% of the national fleet. Olaf Saravia, CEO, Bajaj MotoDrive Mexico, said the company continues to see sustained growth in the country and currently ranks as the third-largest motorcycle brand in the Mexican market.

Saravia noted that the company already operates in Parque Toluca 2000, with an installed capacity of 200,000 units per year, and manages the largest spare-parts warehouse for the brand outside India. With the new facility, Bajaj MotoDrive aims to expand its share of Mexico’s motorcycle market while reinforcing the State of Mexico’s position as one of the country’s leading industrial corridors.

Mexico-India Strengthen Technology, Trade Cooperation

Beyond industrial investment, officials from Mexico and India are also working to deepen bilateral economic cooperation. Marcelo Ebrard, Mexico’s Minister of Economy, held a dialogue with Ambassador Pankaj Sharma aimed at institutionalizing mechanisms for technological investment and bilateral trade between the two countries, reported MBN.

The conversation focused on expanding collaboration in pharmaceuticals, digital technologies, and advanced manufacturing, while aligning the growth of Indian investment with the government’s Plan México strategy. Ebrard highlighted the role of Piyush Goyal, India’s Minister of Commerce and Industry, as a key partner in advancing trade negotiations, noting that Sharma’s diplomatic efforts have been “fundamental in consolidating a constructive bilateral dialogue.”

As both governments seek to expand economic cooperation, several sectors have emerged as strategic pillars of the bilateral agenda. Officials from Mexico’s Ministry of Economy and the Embassy of India identified manufacturing integration and digital ecosystem development as central components of the partnership for 2026 and beyond.

The nearshoring trend has positioned Mexico as a strategic hub for Indian technology companies seeking proximity to the US market. Indian IT services firm Tata Consultancy Services opened a center in Monterrey with 700 employees, later expanding the workforce to 1,000 workers, contributing to the creation of more than 2,500 jobs nationwide. Other Indian technology firms, including HCL Technologies and Infosys, have also outlined plans to expand operations in Mexico as demand grows for digital services and engineering talent.

In the automotive supply chain, auto parts manufacturer Vimercarti Viney announced a US$200 million investment in the state of Nuevo Leon in 2023, supporting the Plan México initiative aimed at strengthening domestic manufacturing supply chains.

Expanding Cooperation In Health And Space Industries

Beyond manufacturing and technology, Mexico and India are also advancing collaboration in healthcare innovation and aerospace research. Indian biotechnology company ImmunoAct is working with Mexican institutions including the National Institute of Medical Sciences and Nutrition Salvador Zubirán, IPN, and the Mexican Agency for International Development Cooperation to introduce advanced cancer therapies in Mexico.

In the aerospace sector, cooperation between the Indian Space Research Organisation and the Mexican Space Agency has focused on satellite technology, remote sensing and wildfire monitoring, following India’s cost-efficient lunar exploration achievements.

At the same time, Mexican companies continue expanding their footprint in India. Firms such as Grupo Bimbo, Cinépolis, and KidZania have collectively invested about US$810 million in the Indian market.

Strategic Roadmap For 2026

Following the meeting between Ebrard and Sharma, both governments outlined several milestones to strengthen economic ties. A technical call between Ebrard and Goyal is expected in the coming weeks to discuss trade quotas and tariff agreements. A ministerial meeting scheduled for the second half of 2026 aims to finalize investment protocols in the digital and pharmaceutical sectors.

In addition, the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE) delegation from Jalisco plans an official visit to India in November 2026 to strengthen academic and technological cooperation.