Zhejiang Geely Holding Group Co, the owner of Volvo Cars, may begin building a plant in China this year that will make the Swedish brand's cars, Bloomgerg reported.

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"We have yet to decide on the location for the new plant, with Chengdu in Southwest China and other locations under study," Bloomberg reported, citing Geely President Yang Jian Yang added that there is an opportunity for construction to begin this year.

Geely, based in Hangzhou in eastern Zhejiang province, bought Volvo Cars from Ford Motor Co in August for about $1.5 billion.