Tesla's (TSLA) electric vehicle (EV) sales in China fell more than 30% in July compared with June, data from the China Passenger Ca𝓀r Association (CPCA) showed on Thursday, as the company idled production while domestic Chinese EV makers gained market share with more-affordable offerings.

Tesla sold 64,285 China-made EVs in July, down 31% from June's total but up 128% from the same quarter last year, when an upgrade at Tesla's Shanghai gigafactory curbed production and sales, Reuters reported. Last month's decline was partly due to Tesla idling some production as it prepared for a revamped Model 3 launch.

The decline comes at a time when domestic Chinese EV makers are gaining ground on Tesla in their home market. China's BYD, whose cars are generally more affordable for domestic buyers, extended its lead over the U.S. carmaker in sales of China-made EVs. Sales surged 61% from the same quarter last year to more than 260,000 passenger vehicles, as Chinese consumers snapped up the company's lower-priced models.

Other Chinese startups such as Nio (NIO) and Xpeng (XPEV) also posted higher deli𒆙veries last month, bolstered by the release o🔥f new electric SUV models.

Despite having lost ground to domestic Chinese automakers, Tesla was the only foreign brand to have increased its market share in China in the first half of 2023, with the company's second-quarter deliveries there hitting a record 156,676.

"New energy vehicle," or NEV sales in China likely totaled 750,000 last month, the CPCA is expected to report when it releases full results for July later this month. Just over 800,000 NEVs were sold in the country in June, according to the China Association of Automobile Manufacturers, up 33.4% year-over-year.

Shares of Tesla were up slightly as of 12 p.m. EDT Thursday. They have more than doubled so far this year. S🐽hares of rival Chinese EV makers Xpeng and Nio are up 90% and 50% over the same period, respectively.