The Economic Times of India says that Volkswagen is planning to set up a separate manufacturing facility in Maharashtra and that Skoda is also planning to create an export hub in the state for its markets spread over south-east Asia.

The two makers presented their plans to Maharashtra chief minister Sushil Kumar Shinde in Mumbai (formerly known as Bombay) on Monday.

Lutz Wagner, director, sales and marketing, Asia-Pacific, Volkswagen AG, along with Helmut Schuster, board member, Skoda Auto, and Ashok Jain, chief advisor, Volkswagen, attended the meeting.

“The state government assured them total co-operation and suggested two sites for the proposed project,” a highly placed official present at the meeting told ET. Mr Schuster told Mr Shinde that a team of officials from VW would soon visit Maharashtra to finalise the site for the plant.

The sites suggested by the state are located in Navi Mumbai, near the Jawaharlal Nehru Port Trust and near Khopoli, along the Mumbai-Pune expressway, said the Economic Times.

The newspaper also said that Volkswagen’s move to set up a plant indicates that it is reviving its plans for the Indian market. Skoda wants to make its Indian manufacturing base – located at Shendre in Maharashtra – a sourcing point for its Asian operations, sources said.