BEIJING, April 9 Reuters Sales of electric passenger vehicles in China rose 10.5 in March from the same month a year earlier, industry data showed on Tuesday, as automakers led by popular BYD deepened discounts and offered financing tools to boost sales.

For JanuaryMarch, sales totalled 1.03 million EVs, up 14.7 on year and the slowest quarterly growth since the second quarter of 2023, the data from the China Passenger Car Association CPCA showed.

New energy vehicles NEV including allelectric models and plugin hybrids made up 41.5 of overall passenger car sales in March, which jumped 5.7 to 1.71 million vehicles.

Authorities have joined automakers in trying to convince consumers to buy cars to help jumpstart a sluggish economy. Initiatives include revising car loans to promote auto tradeins and scrapping governmentset minimum down payments for newcar purchases.

The launch of an electric sedan by electronics maker Xiaomi last month prompted rivals to announce further price cuts and subsidies.

BYD, which ceded the top EV seller title to U.S. peer Tesla in the first quarter, in March lowered starting prices for nine models including four under its premium brand Denza by 4 to as much as 20.5.

BYD Chairman Wang Chuanfu forecast falling profit margins this year as the price war intensifies, but said the automaker would ensure stable profitability by improving sales. It is targeting 20 sales growth this year.

The auto sector39;s profit margins have fallen to 4.3 from 8.7…