Zhejiang Geely Holding Group, the largest privately owned carmaker in China and also the parent of Geely Automobile Holdings, denied that it will spend US$ 2 billion to build an auto plant in Indonesia.

Rumors said Geely will start constructing on the plant before 2014 with an annual output capacity of more than 30,000 autos in the initial phase, with models including sedans, SUVs, MPVs and vans.

Media reports also said Geely expects to expand its vehicle market in the ASEAN member countries, and in Australia and New Zealand, via the launch of the new Indonesian plant.

However, Geely denied the news and noted that the company is still discussing what to do with its Indonesian market.

At present, Geely indeed co-owns a knockdown assembly line in Indonesia with a local partner. But the small-scaled facility principally produces only the Geely Free Cruiser models.

Sources reported that Geely will launch two new models, the Emgrand EC7 and Global Eagle GC7, in September 2011.