The Confederation of Indian Industry (CII), in association with the Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA) organised a seminar, Auto Metering 2008, a seminar on opportunities in the automotive sector in the Latin-American-Carribean (LAC) regions.

The event attracted the participation of a high-level delegation from El Salvador, headed by vice-president, Ana Vilma Albanez de Escobar. In his opening address, Madhur Bajaj, vice chairman, Bajaj Auto Ltd, mentioned long-standing economic and business ties between India and LAC countries.

Bajaj said, "With growing demand for tier-1, or low-cost vehicles in both the Indian and LAC markets, the time has come for companies in both regions to identify co-creation possibilities and work on the synergy in operations, he said. "With notable ventures such as Tata-Marco Polo, Maruti's entry in the remanufactured car market, India-LAC business ties are today stronger than ever before", he added.

He also took note of Latin America's role in the introduction of ethanol-blended fuel in India. Bajaj is one of India's leading two- and three-wheeler manufacturers, with exports of approximately 100,000 vehicles to El Salvador alone.

Ravi Thapar, joint secretary (LAC), ministry of external affairs, in his address, mentioned India's strong ties with the LAC region in the IT, pharmaceuticals and automotive parts business. "With India's emergence as a world leader in IT and now low-cost vehicle production, the time is ripe for invigorating Indian businesses to invest and explore opportunities in the LAC region", he said.

Emphasising that India and El Salvador already have bilateral trade worth $20 million per year, Thapar said, "This will be further bolstered by the set up of an IT centre in El Salvador, which will help business and the government in procuring information on use of IT in various fields". He also mentioned the progress in diplomatic ties, with El Salvador, Honduras and Nicaragua moving to consular status, enabling faster visa formalities for residents of these countries.

In the keynote address, vice-president Albanez de Escobar of El Salvador, who has been heading the Export and Investment Promotion Agency for the last three and a half years, noted the changes in El Salvador's economy, with de-regulation and improved trade agreements playing an important role.

She brought out the contrast between El Salvador to Brazil and Mexico, the LAC regions' biggest markets, El Salvador being the third. "Both these nations started with auto assembly plants, moving up the value chain to today supplying components and vehicles to markets outside the region", she said.

Albanez de Escobar noted that El Salvador's labour costs were 40 per cent lower than Mexico's, its closest neighbour. She also announced the opening of a $200-million port project later this year, which will be one of its kinds and setting up of an embassy in India later this year. El Salvador is the LAC regions' third-largest market, and the 10th largest market for US exports.

In a vote of thanks, S Ganesh, managing director, Liners India Ltd., shared the goals of the automotive mission plan 2016, and the goals of ACMA - to touch $20 billion each in local and export-oriented production. The rest of the day had presentations from the Brazilian, Mexican and Indian industry, followed by a session for business meetings for industry and officials from Indian and LAC countries.

About the LAC region: The LAC region comprises of 44 South American, Central American and Caribbean countries. With major emerging economies and its proximity to the US markets, the LAC region is a high-focus region for global businesses. India's exports to the region have gone up from $478.74 million in 1996-97 to $2,956.01 million in 2005-06, registering a growth of around 517 per cent over a decade.