Chinese carmaker Geely Automobile plans to invest 2 billion yuan ($300 million) over the next three years to boost car manufacturing capacity at its Lanzhou plant in Gansu Province.

The Lanzhou plant's capacity will increase from 50,000 to 120,000 units, China Daily reported.

Analysts say Geely's strategy to focus on Lanzhou would be beneficial in the long run as the relatively low logistics cost will help increase its market share in the region.