BRILLIANCE China Automotive Holding Ltd, the famous minibus manufacturer said yesterday it will use part of proceeds raised from a convertible bond sale to fund its self-developed models and engines.

Part of the investment will be used to boost the development its self-designed engine to back the Chinese's government's call to raise the self-designed capability of the domestic auto industry as well as to increase its capacity to meet rising demand.

Brilliance will roll out its own 1.8T engine, which would generate 10 percent more power with less fuel consumption, and it could also meet the fourth-generation emission standard, equivalent to Euro IV in Western countries.

In addition to auto parts, the company, based in Shenyang in Liaoning Province, will also accelerate the production of its own brands and the launch of models including the modified Grense MPV and even hybrid models.

Brilliance China plans to produce 250,000 units of autos including sedans, multi purpose vehicles and minibuses next year and the output capacity would double to 500,000 units by 2008 amid buoyant car sales.