According to the most recent retail sales figures, Tesla (NASDAQ:TSLA) is on track to post one of its best quarters in China after becoming the nation’s first manufacturer of electric vehicles to lower costs in an effort to maintain market share.

Retail sales for the American EV manufacturer in China from January 1 to March 19 reached 106,915 units, or an average of 1,371 units per day, according to information from China Merchants Bank International, which keeps track of auto insurance registrations.

It sold an average of 1,327 units per day in China during the fourth quarter, which was its highest quarter to date for Tesla sales, with a total of 122,038 vehicles sold.

Tesla did not immediately respond to a request for comment.

Backed by stronger earnings per vehicle than other electric vehicle manufacturers, the American automaker reduced prices of its best-selling models by up to 13.5% in China in January, starting a pricing war that saw BYD and many rivals follow suit over the following two months.

With its extensive lineup of electrified product options in China, BYD outsold Tesla by more than five times during the January and February quarters, despite Tesla’s rapid growth.

In the next two years, the business plans to release updated versions of the Model 3 and Model Y to address an aging product mix that is affecting customer appeal. To smooth out the ride in the Chinese-made Model Y, the suspension system has also been upgraded since January, an improvement that was praised on social media by Tesla supporters.

The corporation increased its marketing efforts in China to appeal to more practical clients by emphasizing energy efficiency and practical aspects like safety and storage capacity.

According to calculations by Reuters based on information from the Chinese Passenger Vehicle Association, Tesla’s sales in China’s fragmented new energy car market, which includes pure electric and plug-in hybrid vehicles, accounted for 7.9% of all sales in the first two months, a tiny increase from 6.8% in the same period last year.

BYD increased its market share to 41% from 29% a year earlier, extending its dominance.