If the plan goes ahead as expected, it would give Zhejiang Geely a combined capacity to make 300,000 Volvos a year in China, Geely spokesman Ning Shuyong said.

That would represent a huge production increase for Volvo, which sold 334,000 cars last year.

Possible locations of the new Volvo plants are the Jiading district on the outskirts of Shanghai, and the northeastern city of Daqing. It also would expand an existing Geely plant in the southwestern city of Chengdu, said Ning, adding that the final plan still needed the approval of Volvo's board and the Chinese government.

Li Shufu, chairman and founder of privately held Zhejiang Geely, also told reporters in Hong Kong he is in no hurry regarding the final decision for Volvo's China plants.

"It takes time," Li said when asked about the timetable for the plants. "It may take years."

Zhejiang Geely, parent of Geely Automobile Holdings, completed its purchase of the Volvo car brand in August, marking China's largest overseas automotive acquisition.

With the deal now completed, Geely faces the challenge of restoring Volvo to long-term profit. Last year, Volvo generated $12.4 billion in revenues, but recorded a pre-tax loss of $653 million.