The Tianjin plant will launch operations in 2011 with an initial capacity of 300,000 units, doubling to 600,000 units in 2012. The company says the plant will reach full capacity of 800,000 units by 2015.

The Tianjin plant will mainly build the Hover SUV and the Tengyi sedan.

In February of 2009, the private Chinese automaker started building a new plant with a capacity of 500,000 units a year in Tianjin's Economic Development Zone. Before it was even finished, Great Wall announced on May 20 that it would expand the plant.

In its statement, Great Wall says its expansion will enable the company to "leapfrog in development." Indeed, Great Wall's production plans are based on the assumption that the company will achieve a stunning increase in sales volume.

Last year, Great Wall sold 155,225 vehicles, according to Automotive Resources Asia, a J.D. Power unit. In 2010, the company aims to increase its sales to 400,000 vehicles.

In the first four months of 2010, China's car sales jumped 63.6 percent to 4.6 million units. But analysts predict China's overall sales will level off to a 15 percent increase for the year. If so, Great Wall will have to grab market share from its rivals.

Moreover, the company already has considerable excess production capacity. Great Wall's assembly plant in the north China city of Baoding has a production capacity of 500,000 units. The plant produces the Wingle pickup, Hover SUV and the Florid, Coolbear and Tengyi sedans.