MUMBAI: Maharashtra is making a strong comeback in the automobile sector after losing out to Gujarat, Andhra Pradesh and Tamil Nadu in recent years, with companies promising fresh investments worth billions of dollars in the western state over the next five to seven years. US automobile giant General Motors has committed to invest $1 billion (Rs 6,770 crore) in new facilities.The Maharashtra government has signed memoranda of understanding with companies such as Mahindra & Mahindra, Mercedes-Benz and Fiat Chrysler, which are expected to bring in $2.5 billion to the state, including from component manufactures.The planned investments are estimated to generate direct employment to 15,000 to 17,000. Two to three times more people are expected to get indirect jobs.For several auto makers, such as from Mahindra and Bajaj Auto to Audi and Mercedes-Benz, Maharashtra is already home.While the state has managed to hold on to existing investors, fresh investment over the past few years has mostly gone to Gujarat and Andhra Pradesh. Despite courting Maruti Suzuki and Ford for long, Maharashtra lost out on the investment to Gujarat. But now the state government is actively pursuing auto makers, as the industry both brings investment and create jobs at large scale.Apurva Chandra, Maharashtra’s principal secretary for industries, told ET that the state has already proven itself to be a good automotive base thanks to the underlying ecosystem of wellqualified work force, a strong vendor base and proximity to ports and major markets.“Apart from being located in the centre of the country, Maharashtra also is a strong consuming state, so that it offers benefits to the companies setting up shop in the state. Law and order is very conducive, infrastructure is in place and incentives are also very good, hence it is giving ample confidence to the existing players to continue to invest in expansion in the state,” added Chandra.A part of Mahindra’s investment will be towards the next phase of expansion at its Nashik plant, while another chunk will go to the Chakan plant to increase capacity. Mercedes-Benz, which has already invested over Rs 1,000 crore, will be doubling its investment in the state to take up the capacity fourfold to 80,000 units a year to serve the country’s growing affluent population.The capacities that these companies are building will also help increase vehicle exports, pushing the government’s Make in India cause. General Motors India, Volkswagen India and Fiat Chrysler (Jeep) have plans to export 30-50% of their production in the coming years.Apart from Chakan, the state is developing the Shendra region in Aurangabad as an automotive cluster to invite more players. While Chinese truck maker Foton has committed money in Maharashtra, there are many other Chinese players that are already scouting for plant location in India.Pravin Shah, chief executive for the automotive sector at Mahindra & Mahindra, told ET that the matured vendor base, along with good infrastructure, makes it beneficial to invest in the state.“The Chakan plant is our main plant for future. Instead of investing in new greenfield plant, it makes sense to create volume leverage and improve the operating and capital cost. With KUV (the new small SUV), we have slightly expanded the capacity and we will continue to inch up capacity when required,” Shah said.