(Bloomberg) -- BYD Co. sold a record number of electric and hybrid cars in the second quarter, sales data compiled by Bloomberg News shows, as price cuts and new technology stoked consumers into purchases.

China’s best-selling car brand sold nearly 1 million models over the period, solidifying a rebound after a slow start to the year. The sales were driven in part by the company’s move to reduce prices across most models earlier this year, sacrificing profitability, to target gasoline models made by foreign brands.

In terms of purely electric vehicles, the Shenzhen-based auto giant’s quarterly sales of 426,000 units put it within striking distance of overtaking Tesla Inc. as the biggest seller of EVs globally again. Tesla, projected by analysts to sell 439,301 EVs in the second quarter, is experiencing a slump in sales in key markets like China and Europe.

In the period between April and June, BYD sold a record 982,747 passenger vehicles. In June, that amounted to 340,211 electric and hybrid passenger vehicles, also a record on a monthly basis. Exports also rose over 100,000 for the first time in a quarter as trade tensions increased.

Pushback from the US and, more recently, the European Union over China’s EV exports could undermine BYD’s global ambitions in key markets. In Europe, sales are sluggish even before additional tariffs are fully imposed. The company is hoping to captivate consumers in part by sponsoring the European Championship football tournament.

WATCH: How China's BYD Overtook Tesla

BYD’s Hong Kong-listed shares were 1.6% lower as of 1.20pm Tuesday. The likes of Geely was also dragged lower by 3.4% while NIO Inc. was 2.8% in Singapore trading.

“The outlook into the third quarter might be different,” said Yuqian Ding, head of China Autos Research for HSBC Qianhai Securities Ltd. said in an interview. “Demand might be tracking soft, some manufacturers might resort to aggressive price action, and some seasonal promotions might also be at their disposal.”

During the second quarter, BYD launched its first hybrid pick-up truck in Mexico to expand into a new vehicle type. The car brand also unveiled a new plug-in hybrid platform capable of more than 2,000 kilometers of range, further boosting sales.

Shares in BYD’s Hong Kong-listed stock rose 15% in the most recent quarter, out-pacing Tesla’s 13% gain and most industry peers, which fell over the same period.

BYD has sold 1.61 million electric and hybrid vehicles this year, an increase of 29% over the same period last year, lagging behind its smaller rival Geely Automobile Holdings Ltd., which saw its sales increase 41% in the year to June. BYD’s Hangzhou-based rival on Monday raised its annual sales target by 5% to 2 million. BYD remains on track to sell 3.6 million units by the end of the year.

(Adds share price move, updated Tesla estimates and context from 5th paragraph.)

©2024 Bloomberg L.P.