A charging plug for the battery for the eNiro Kia electric car is pictured at the 89th Geneva International Motor Show in Geneva, Switzerland March 6, 2019. REUTERS/Denis Balibouse

SEOUL (Reuters) - Kia Motors may halt operations at its No.1 plant in China as part of its longer-term efforts to enhance competitiveness, a source familiar with the matter said on Sunday.

Kia Motors said in a statement after the source told Reuters on Sunday that the company is reviewing various plans to strengthen production and sales competitiveness in China.

Kia Motors, an affiliate of Hyundai Motor, makes cars in China in a tie-up with Dongfeng Motor Group and Jiangsu Yueda Investment Co Ltd. They run three factories in Jiangsu Province in China.

Hyundai Motor also said the automaker was considering suspending production at its oldest plant in China as sales tumble and it struggles with overcapacity in its biggest market.