Carmaker Volvo will probably establish a plant in Chengdu, Sichuan province, according to company executives quoted by Xinhua.

“The new plant will be set up after Chinese authorities approve our application and the Volvo board of directors OKs the move in December,” said Shen Hui, Volvo’s senior vice president responsible for operations in China. Mr Shen praised Chengdu's investment environment, human resources, and relations between auto enterprises and the local government.

The Sweden-based automaker was sold to Zhejiang Geely in March 2010.

Hyundai Motor is another automaker looking to set up operations in Sichuan. The Korean company was reported by China Daily to have plans to set up a plant in Ziyang, in the central-eastern part of the province.

Hyundai and Sichuan Nanjun Automotive Group each plan to invest Rmb1.5bn to launch a joint venture, which could produce 200,000 vehicles in 2013 and 700,000 in 2020. It will also be engaged in the development of electric and gas-powered vehicles.