Chinese State-owned automaker, SAIC Motor, is now outselling the electric car firm, Tesla, in China. SAIC Motor sold 25,778 Hong Guang Minis last January compared to 13,843 cars by Tesla. The electric vehicles sell for only 28,000 yuan or $4,465, which is eight times cheaper than Tesla’s cheapest model. Sales of the low-cost electric car were nearly double those of Tesla, which was questioned this month over safety concerns in China. But the Hong Guang Mini isn’t Tesla’s only competitor. Other Chinese start-ups such as Nio, Li Auto, and Xpeng have all announced higher sales in 2020 as the demand for electric vehicles has increased in the region, thanks in part to generous government subsidies.

China, the world’s largest car market and the source of more than a fifth of Tesla’s revenue, is stepping up its efforts to raise electric vehicle sales in order to combat the country’s problems in pollution. Although it clearly lags behind Tesla in terms of battery, range, and efficiency, car experts say its simplicity and low price have made it one of China’s most common “new-energy” vehicles. “China’s government is serious about pollution reduction and becoming the global lead in adopting and promoting innovation of electric vehicles,” Shaun Rein said, the managing director of the Market Research Group in China.