SHANGHAI, (Reuters) –U.S.-based electric vehicle maker Tesla (NASDAQ) Inc shipped 65,814 Chinese-made cars in March. This is an increase of 16% over the previous month according to data released Monday by the China Passenger Car Association.

The data revealed that Tesla’s Shanghai plant produced 55,462 vehicles, but only 154 more than February. This is a short month in which workers are usually able to take some time off during the Lunar New Year holidays.

Due to COVID-19 control measures across China, the association stated that EV producers in China have produced far fewer cars than they expected.

Cui Dongshu (association secretary general) stated that the EV producers are selling off stockpiles to help support delivery.

According to the association, overall passenger car sales for March 2008 in China were 1.61million, which is 10.9% less than a year prior.

China has implemented strict controls to stop the spread of Omicron variant, a highly contagious virus. This includes Jilin Province and Shanghai where major automakers’ factories and suppliers are situated.

Cui stated that these measures affected the logistics of automobile sales nationwide.

He stated that automakers faced “tremendous” demands to make sure they received their deliveries.

Chinese electric vehicle maker Nio (NYSE 🙂 announced Saturday that it has stopped production following disruptions at suppliers due to China’s recent measures to control the epidemic. Nio shares plunged by 9% Monday.