Two-wheeler firms try Make-in-Mexico to avoid tariffs

India’s top two-wheeler exporters are looking to increase local assembly of motorcycles and scooters in Mexico to blunt the impact from the country’s high tariffs on Indian exports imposed last December, and effective 1 January.

- Ayaan Kartik

‘The move by Bajaj Auto Ltd, Hero MotoCorp Ltd, and TVS Motor Co. Ltd comes in the backdrop of exports to Mexico—India’s biggest two-wheeler export market—having slowed 30% this fiscal even before the tariffs.

Senior management at the three listed companies assured investors in earnings calls over the past couple of weeks that exports to Mexico would not face material disruption, citing local assembly arrangements and the ability to shift production across geographies if required. In other words, they may export more from other countries that attract lower tariffs in Mexico.

Currently, Bajaj Auto and Hero MotoCorp have assembly operations in place in Mexico, while TVS is gearing up to build a presence.

On 10 December 2025, Mexico imposed a tariff hike on imports from countries with which it has no free trade agreement, including India.

The duty on imported two-wheelers—also called completely built units or CBUs—has risen to around 35%, from an earlier range of 15-20%.