A notorious drug cartel set fire to a bus outside a pawn shop in Mexico following the arrest of one of their leaders by the Mexican military.

Video shows the blazing vehicle sitting in a carpark in Zapopan City in Jalisco on August 10. Thick black smoke rose into the sky as the fire ripped through the bus's interior.

Narco-terrorism erupted across Jalisco and neighbouring Guanajuato Tuesday evening as the Cartel Jalisco Nueva Generacion reportedly set fire to buses, cars, trucks, and 25 convenience stores across the two states.

The drugs gang mounted a string of violent attacks allegedly in retaliation to the military's arrest of Nemesio Oseguera or 'El Mencho,' one of the gang's most-wanted high-ranking leaders.

Convenience store company OXXO said no one among their staff and customers had been injured during the raids.

Mexican President Andres Manuel Lopez Obrador said on Wednesday that soldiers had captured criminals during a 'meeting of two gangs' in Jalisco. He said: 'This provoked protests of burned vehicles, not only in Jalisco, but also in Guanajuato.'