Ningbo-based Aux Group announced yesterday in Beijing that it will invest heavily in the automotive industry in a first step to expand its business.

　　The world's largest electric meter maker and China's third-largest refrigerator manufacturer also said that it plans to sell shares in the Chinese mainland and Hong Kong stock markets as well as purchase a listed company by the year of 2006.

　　By then, it will reach overseas sales of US$300 million, open 30 overseas branches or offices and build three overseas production plants, company executives said.

　　In the next five years, the group plans to invest 8 billion yuan (US$963.86 million) to make 450,000 vehicles, including sports utility vehicles, trucks and sedans, said Huang Jiangwei, the group spokesman.

　　"We are facing stiff competition in the refrigerator market, currently our core business," said Huang. "The profit margin is already very thin because of price wars."

　　Aux sold 2.5 million refrigerators last year, 930,000 units more than in 2002. It expects to sell 3.8 million units this year.

　　It will also enter the handset, property, logistics, medical care and capital investment sectors, Huang said. However, the specific plans for business expansion in these industries are not available currently, he noted, except saying it hopes to sell 70 million handsets in eight years.

　　The group also bought Shenyang Shuangma Automobile Company, now the Shenyang Aux Automobile Co Ltd, in Liaoning Province in September.

　　Yu Wenhe, general manager of Shenyang Aux, said that it will launch a sports utility vehicle called Coremotivity and a truck called Raytour early next month. Coremotivity is priced between 73,800 yuan and 83,800 yuan, while the Raytour will be sold between 61,800 yuan and 65,800 yuan.

　　Aux Automobile now has a production capability of 30,000 units yearly.