Tesla Inc.’s China output increased almost 20% in June, contributing to the company’s record quarterly sales.

The US electric-vehicle maker led by Elon Musk shipped a total of 93,680 cars from its factory in Shanghai last month, preliminary data from China’s Passenger Car Association showed on Tuesday. That compares with 78,906 units in June 2022, and 77,695 vehicles in May.  

While PCA didn’t break out local deliveries and exports, Tesla typically focuses more on the domestic market in the last month of each quarter. 

The electric-car manufacturer gained momentum at the start of the year when it slashed prices of its locally built Model 3 sedans and Model Y sport utility vehicles. It quickly faced pressure from local competitors, which followed suit with discounts. After a price war leading into the Shanghai auto show in April, deliveries started to pick up again and the overall market for new-energy vehicles remained strong. 

China’s total sales of new-energy passenger vehicles to dealers in June rose an estimated 30% from a year ago, and were up 10% from May, to 740,000 units, PCA said. The government last month announced an extension of tax breaks for consumers buying clean cars through 2027, its latest move to boost sales and production in the world’s biggest EV market.