New Delhi: With growing demand for low-cost vehicles in both the Indian and Latin American Countries (LAC), the time is ripe for vehicle and ancillary manufacturers in both regions to identify co-creation possibilities and work on building up synergies in operations.
CII in association with SIAM and ACMA organised a seminar on Auto Metering that tracked opportunities in the Automotive Sector in the LAC regions, chaired by Ana Vilma Albanez de Escobar, vice president, El Salvador.
According to Madhur Bajaj, vice chairman, Bajaj Auto, India has a pre existing advantage, in that it has a long-standing economic and business relationship with variouis LAC countries and with notable ventures such as Tata-Marcopolo, Maruti’s entry in the remanufactured car market, the India-LAC business ties are today stronger than ever before”.
Latin America has played a role in the introduction of Ethanol-blended fuel in India and Bajaj is one of India’s leading 2 and 3-wheeler manufacturers, which exports approximately 1, 00,000 vehicles to El Salvador alone.
Ravi Thapar, joint secretary (LAC), ministry of external affairs pointed out that India also has an edge, with its strengths in the area of Information Technology and now low-cost vehicle production. This new development in the world’s eyes, has given Indian industry a new image and a much needed fillip.
India and El Salvador already have bilateral trade worth $20 million per year and this will be further bolstered by the setting up of an IT Centre in El Salvador, which will help business and the government to procure information on use of IT in various fields. The progress in diplomatic ties, with El Salvador, Honduras and Nicaragua moving to consular status will enable faster visa formalities for residents of these countries.
For the last three and a half years, the El Salvador economy has seen a fair deal of de-regulation and improved trade agreements that bring out the contrast between El Salvador to Brazil and Mexico, the LAC regions’ biggest markets and El Salvador being the third. The renewed relationship with India comes at a good time because their labour costs are low and the economy is on an upswing.