(Yicai) Aug. 14 -- Dongfeng Motor Corp. is in preliminary discussions with the Italian government about setting up a factory in the European country to supply the local market, the Chinese auto manufacturer told Yicai in response to media reports that it is planning to build an auto plant in Italy.

“Talks between the Italian government and China's Dongfeng Motor Group about building an auto plant in Italy are at an advanced stage,” Reuters reported on Aug. 6, citing Italian sources close to the matter.

“Italy is demanding Dongfeng agree to safeguards on cybersecurity and data protection as the price of support for a new plant by the Chinese automaker,” Bloomberg reported on Aug. 9, citing people familiar with the matter. It has also urged Dongfeng to source at least 45 percent of all parts for each car locally.

Dongfeng told Yicai that the discussions are still ongoing and they have not mentioned such conditions.

Dongfeng is considering building a plant with a capacity of more than 100,000 vehicles a year in Italy and has started negotiations with the Italian government, according to a report published in April, citing the head of the firm’s European business. But the Wuhan-based company denied the report at the time.

Dongfeng’s electric cars, including its EV arm Voyah Automotive Technology, are already available in European countries such as Spain, Italy and Switzerland.

Dongfeng plans to introduce seven luxury, high-end NEV models to northern Europe and link arms with local service providers to set up 34 marketing outlets in all nations in the region by 2025, it said previously. Voyah plans to do business on six continents by 2030, enter 60 countries, and build 500 sales outlets to achieve overseas sales of over 500,000 vehicles.

Editor: Kim Taylor