Hyundai Motor plans two new factories in China instead of one, two industry insiders have said, though confirmation was not forthcoming from the automaker.

One source told Reuters the increase was to meet the request of China's central government, which wants Hyundai to build a plant in the northeastern Hebei province as part of a development plan spanning Beijing, Tianjin and Hebei.

Hyundai, which has three factories in Beijing, in March signed a preliminary agreement to build a plant in the southwestern city of Chongqing to help the automaker expand into western China, the news agency's report said.

One source said Hyundai had planned to open its US$1bn Chongqing factory in early 2016 but would likely delay production because the automaker has yet to gain central government permission.

Hyundai, which has a joint venture in China with Beijing Automotive Industry Holding, now aims to open a factory in the Hebei city of Huanghua in 2016, ahead of its proposed plant in Chongqing, the two sources said.

A Hyundai spokeswoman said in a statement emailed to Reuters nothing had been decided regarding new factories in China.

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