From having a one-off car company, General Motors, in Halol and truck manufacturer Asia Motor Works in Kutch, Gujarat's auto sector has switched into higher gear.
Close on the heels of its Rs 1,100 crore two-wheeler manufacturing facility in Ahmedabad district, Japanese car-maker Honda Motors is mulling a Rs 4,500 crore car plant at Sanand.
Tata Motors and Ford have already set up units in Sanand, which has fast emerged as India's motown - each investing Rs 4,000 crore in the immediate run. Suzuki Motors is setting up a large unit in Hansalpur near Ahmedabad.
Honda and the Gujarat government are likely to sign a state support agreement (SSA) for the project in the run-up to Vibrant Gujarat.
"In addition to the two-wheeler plant, Honda Motors has decided to open a new car manufacturing facility in Gujarat. The company has purchased a huge chunk of private land near Sanand. The SSA will be signed after the new industrial policy is announced in the first week of October," said a senior official.
The development comes at a time when the Maharashtra government is aggressively marketing itself as a destination for car-makers to counter the flight of investments.