TESLA Inc. sold 66,051 China-made electric vehicles in January, data published by the China Passenger Car Association (CPCA) showed Friday.

That was up 18% from December, when the U.S. electric-car maker sold 55,796 China-made vehicles, and 10.3% higher versus January a year ago.

Tesla was the second best-selling electric vehicle (EV) maker in China last month after Shenzhen-based BYD Co., which shipped 150,164 cars, the CPCA said.

In early January, Tesla slashed the prices of its popular China-made models, including Model 3 and Model Y, by 20,000 yuan (US$2,968.15) to 48,000 yuan.

Tesla’s Shanghai plant in December cut output by about a third from November and extended a Lunar New Year holiday period for workers in January, to cope with rising inventory.

The U.S. firm now plans to step up output at its Shanghai plant over the next two months to meet demand spurred by price cuts early last month on its best-selling models, Reuters reported Wednesday, citing a planning memo and a person with knowledge of the plan.

Tesla’s Shanghai factory, the carmaker’s first Gigafactory outside the United States, delivered 710,000 vehicles in 2022, an increase of 48% from 2021.

“In the long run, China’s automobile market, especially the new energy vehicle market, has a bright prospect. Compared with developed countries, China’s car ownership rate per capita still has huge potential for growth,” said Cui Dongshu, secretary-general of the CPCA.

According to the CPCA’s estimates, sales of new-energy passenger vehicles in China will reach 8.5 million units in 2023. (SD-Agencies)