Toy maker Injusa has extended its footprint across the Atlantic. The Ibi-based company is starting operations in Mexico as planned, creating a pathway to boost sales there and set up a quick entry into the United States. The initial production focuses on passenger vehicles, with a target of 30,000 units and a first-year turnover of around 1.2 million euros.
Like much of the toy sector, Injusa, which specializes in electric and passenger vehicles, faces a challenging moment. A post-pandemic pullback in consumer spending has shifted demand toward more affordable options within mid- to high-end product lines. In particular, the market has rewarded lower price points, pressuring margins for pricier models.
The latest figures, not yet fully formalized, show a 2022 turnover decline of about 21%. Overstock and stock clearance practices have also weighed on results, alongside rising costs driven by inflation. While expectations for 2023 hinted at a modest improvement, the overall outlook remains intricate and sensitive to macroeconomic shifts.
Rather than pause, Injusa has rolled out an ambitious regional expansion plan. A key pillar is production in Mexico, a move intended to reduce logistics costs and sharpen price competitiveness in the North American market. The company began manufacturing in the Aztec country late last year under a subcontracting agreement with a local plant, chosen as a cost-efficient alternative to building a new facility. The stated goal is to offer more competitive prices in the U.S. and Mexico by cutting transportation expenses from Spain.
From the outset, the strategy leverages new opportunities in the region with products tailored to American tastes and needs. The first items produced were rider motorcycles—basic injection-molded models without electronics—intended as the cornerstone for expanding the product range. Throughout, Injusa maintains a commitment to Spanish-quality standards, with the same materials and molds used and strict control of production processes to ensure consistency across markets.
Prospects appear favorable, with plans to lift Mexican sales by around 60% this year, adding 30,000 units and reaching roughly 1.2 million euros in turnover. The short- to medium-term objective is to grow the share of the group’s revenue generated in Mexico from 11% to about 20%.
These near-term targets sit within a broader ambition for the North American market, with the United States in sharp focus. While distribution in Mexico begins immediately, talks with potential North American customers are already underway, with the aim of forging key business relationships as soon as possible. The expansion into Mexico is viewed not merely as a standalone project but as a gateway to deeper market penetration across nearby regions.
Injusa does not intend to limit its footprint to two markets. The Mexican production opening also creates opportunities to reach other Latin American regions, aided by enhanced logistics and a commitment to adapting products to local preferences rather than defaulting to European tastes. This flexible approach is paired with ongoing modernization efforts at the Ibi facilities, including investments in energy efficiency and digital sales channels to stay aligned with evolving consumer behavior.
Toy company Injusa shifts production from China to Ibi and eyes broader growth
The company is betting on a successful strategy that blends volume growth with enhanced operational efficiency. Alongside the move, Injusa continues to invest in digitalization and facility modernization. A dedicated unit oversees online sales, a move designed to keep pace with shifting shopping patterns and to better serve customers across markets. The shift also reflects a broader trend among toy manufacturers seeking greater regional sourcing flexibility to reduce risk and improve lead times.
Injusa has also renewed licensing arrangements with major brands in recent years, including Porsche, BMW, and Disney. The portfolio remains diverse, extending beyond vehicles to garden and pet lines. The company emphasizes production diversification and sales desynchronization to smooth seasonal fluctuations and sustain momentum throughout the year. This balanced approach helps stabilize revenue streams even when consumer demand shifts between categories.
Overall, the strategic pivot toward Mexico and the expanded North American focus is framed as a way to safeguard growth while maintaining the high quality associated with Injusa’s Spanish origins. The production transition is designed to preserve the same materials, molds, and quality controls, ensuring consistency across markets while enabling quicker responses to local preferences and market conditions. The path forward includes careful cost management, ongoing brand partnerships, and a continued emphasis on efficiency as the company expands its footprint beyond traditional European markets. (citation: Injusa corporate communications, 2023; market analysis briefs, 2024)