The Times of India reports that West Bengal is 'likely to become a leading automobile hub of the country' on the back of several new automotive projects.

After the Tata Motors' small-car project in Singur, Kolkata-based Xenitis Group on Saturday signed an MoU with Chinese auto major Guangzhou Motors Group Company for setting up a passenger car and truck manufacturing facility in the state.

The company has already set up a two-wheeler assembly line in Hooghly in a technical collaboration with Guangzhou.

Chief minister Buddhadeb Bhattacharjee said Mahindra & Mahindra has already signed an agreement with a local company for setting up an automobile facility in West Bengal.

The state government is also in active consultation with the Hinduja Group-controlled Ashok Leyland for an automobile unit.

"Mahindra & Mahindra is keen to set up a unit here. As far as I know, it'll float a joint venture with a local firm. I'm also talking to the Hinduja Group and we are optimistic," he said.