BEIJING, Jan 3 Reuters U.S. electric vehicle maker Tesla said on Friday its China sales rose 8.8 to a record high of more than 657,000 cars in 2024, a strong performance in a competitive market in a year when its annual global deliveries fell for the first time.

Tesla39;s sales in the world39;s largest auto market also increased 12.8 in December from a month earlier to a record high of 83,000 units, according to Tesla China.

In 2024, Tesla delivered 36.7 of its cars to customers in China, its secondlargest market, based on the sales figures.

But global deliveries nonetheless slid 1.1, missing CEO Elon Musk39;s earlier prediction of slight growth. Reduced European subsidies, a U.S. shift toward lowerpriced hybrid vehicles and tougher global competition, especially from China39;s BYD, were a drag on sales.

With fullyear global sales of 1.79 million cars, Tesla was still narrowly ahead of BYD, whose EV sales grew 12.1 to 1.76 million globally.

The U.S. EV giant downsized its global workforce last year in the face of tepid demand and stiffer competition from Chinese EV makers, and cut the size of its China sales team.

As an EV price war in China enters a third year, Tesla has extended a 10,000 yuan 1,369.99 discount on outstanding loans for its bestselling Model Y as well as zerointerest financing of up to five years for some Model 3 and Model Y cars until the end of this month.

BYD, which has led a costcutting competition with its Dynasty and Ocean series of EVs and…