South Korea's largest car manufacturer Hyundai Motor Group is advancing the sale of a closed plant site, the first one built in China, to the Shunyi District government, according to sources, Yonhap News Agency reported Friday.

Hyundai's first plant in China, also known as Beijing No. 1 plant site, was formally shut down in May 2019 due to the company’s severe sales decline and overcapacity.

Beijing No. 1 plant site was built by Beijing Hyundai, a joint-venture between China's BAIC Motor and South Korea's Hyundai Motor, founded in 2002.

It's rumored that Li Auto, the Chinese Tesla rival, will take over Beijing Hyundai's No. 1 plant site to build a global flagship factory.