China's passenger car sales in July rose 8.5% year-on-year, while sales of new energy vehicles rose 19.3%, according to the China Association of Automobile Manufacturers.
Overall, Chinese car sales in July were up 16.4% year-on-year.
Xu Haidong, the association's deputy chief engineer, said China's new energy vehicle market will maintain relatively steady growth in the coming months of this year, with sales of 1.1 million vehicles expected this year.
Tesla is expected to sell 100,000 units in China in 2020, according to the association.
Tesla's revenue in China rose 102.9 percent year-on-year to $1.4 billion in the second quarter of this year, keeping China as its second-largest market after the United States, according to previous reports.
That means 23.19 percent of Tesla's revenue came from the Chinese market.
Chinese electric vehicle (EV) maker NIO delivered 3,533 cars in July, up by 322.1% year-over-year.
The deliveries consisted of 2,610 ES6s, its 5-seater high-performance premium smart electric SUV, and 923 ES8s, a 6-seater and 7-seater flagship premium electric SUV.
In the meantime, according to data provider Qichacha, China added 47,000 new new energy vehicle-related companies in 2019 and the current total stood at 192,000.
In the second quarter of this year, the number of registrations reached 20,000, up 122.2% from the previous quarter. There were 65,000 companies with registered capital of 10 million or more, accounting for 34% of the total.
In the last decade of industry development, the number of registrations began to jump significantly around 2014. 2018 reached its peak with new registrations of 49,000.