Gujarat appears to be the clear frontrunner for Suzuki’s new plant. Reuters quoting Japan’s Kyodo news agency says that a decision is likely to be announced by the end of October.

Osamu Suzuki, Suzuki’s chairman was in Gujarat recently. The Japanese carmaker is currently embroiled in a controversy with Volkswagen over an agreement inked in 2009. Suzuki has decided to opt out while VW claims Suzuki has violated the Framework agreement of 2009.

Maruti Suzuki is in the midst of an 18-day labour problem which threatens to upset production and deliveries ahead of next month’s Diwali season. Peugeot recently announced Gujarat as its choice for a new 170,000 unit factory after Ford which also announced a new facility in the state.

Gujarat’s pro-business policies and its port network are some of the factors that have attracted carmakers to this state which had only GM India’s Halol unit to boast of till the Tatas set up base in Sanand. Maruti sold 77,086 units last month including about 7,000 of its all –new Swift.