(Reuters) - Chinese automakers Dongfeng Motor ( DNFGF ) and Chongqing Changan Automobile are in advance discussions to combine their operations, the New York Times reported on Tuesday, citing people with knowledge of the matter.

The two companies, both controlled by the central government, have conducted detailed discussions on how to merge their operations and informed their foreign partners of the merger discussions, the report said.

Dongfeng has a market capitalisation of $4.89 billion, while Changan Auto is valued at $15.65 billion, according to data compiled by LSEG.

In February, speculations of a merger between the two companies had emerged after they announced that their respective parent companies were planning a restructuring.

The central government fully owns the parent companies, and holds majority ownership of Dongfeng Motor ( DNFGF ) and Changan Auto.

China has been urging its state-owned automakers, which have been relying on their foreign joint venture partners to generate sales and profits, to become more independent in terms of technology, innovation and competitiveness, especially in new energy vehicles.

(Reporting by John Biju in Bengaluru; Editing by Shinjini Ganguli)