GREAT Wall Motor Co Ltd will spend 10 billion yuan (US$1.3 billion) within three years to boost production capacity and break into the car segment to complete its product line-up. One-third of the new investment will be spent on developing new cars, in addition to three billion yuan on research and developing capability and four billion yuan on auto parts facilities, China's largest maker of sport utility vehicles said yesterday.

The investment will help Great Wall to boost production capacity to 500,000 units by 2010, including 200,000 new car models, and achieve sales of 30 billion yuan during the period.

The car maker has developed five car models and one multi-purpose vehicle since last year, and the first sedan will hit the market in August. Great Wall gained a combined US$422 million after two additional share sales on the Hong Kong Stock Exchange, lifting its total capital to 12.9 billion yuan.