Tesla Inc. delivered 83,135 China-made electric vehicles (EVs) in September, smashing its monthly record, according to a report released on Sunday by the China Passenger Car Association (CPCA).

The number marks an 8-percent increase from August and sets a record for Tesla's Shanghai factory since production began in December 2019, surpassing the previous record of 78,906 deliveries in June, as the U.S. carmaker continues to invest in production in China.

The company completed a project to expand production capacity at its Shanghai plant last month, increasing its weekly output by 30 percent.

Tesla is facing growing competition from domestic EV makers. Its major competitor, BYD, continued to lead China's EV market with 200,973 wholesale sales in September, a 15-percent jump from August.

BYD overtook Tesla as the world's biggest EV producer by sales in the first half of 2022.

The CPCA said higher oil prices and government subsidies continue to encourage more consumers to choose EVs. China has extended the purchase tax exemption for new energy vehicles until the end of 2023 in a bid to support the auto sector and boost sales.

(With input from Reuters)