Tesla is poised to achieve another record quarter in sales in China, though it faces growing pressure from local rivals such as BYD, which are taking away its share of the world’s largest car market.

The U.S. automaker may sell 155,000 vehicles in China between April and June, up 13 percent from its record first quarter.

However, Tesla’s share of China’s battery electric car market will shrink this quarter to 13.7% from 16% in the first three months, while BYD and Aion, the EV group of Guangzhou Automobile Group, will increase their share.

Deutsche Bank predicts Tesla sales in China will reach 153,000 units in the second quarter, while the company may sell 448,000 units globally.

Tesla will announce global sales figures over the weekend, while China sales figures will be available from the association in the first week of July.

China is Tesla’s second-largest market after North America, where it has its largest plant. Earlier this year, it slashed prices on two of its aging models to boost sales and launched a price war with competitors, including BYD, which has followed it in offering discounts or launching new models at lower prices.

While smaller electric car players such as Nio and Xpeng have struggled due to a slump in sales in China in recent months, BYD has bucked the trend and extended its lead by offering cars priced below 300,000 yuan ($41,500).

BYD is also catching up with Tesla in markets outside China as exports grow. In the first five months, the company overtook Tesla in Singapore, and its Atto 3 overtook the Model 3 in Australia in May.

Tesla is planning updated versions of the Model 3 and Model Y to bolster sales. The company is also working with Chinese regulators to approve its advanced autonomous driving software so drivers can use it in China.

As the Shanghai plant has reached an annual production capacity of more than 1 million units, Tesla is entering new markets in the region, including Thailand and Malaysia, with cars made in China.