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STORY: China's passenger vehicle sales returned to growth in August year-on-year.

Consumers were tempted to buy with deeper discounts and tax breaks for electric vehicles.

Industry data showed car sales were up 2.2% in August from the same month a year ago to 1.94 million units.

It was the first year-on-year gain since May.

U.S. carmaker Tesla was a major winner.

The auto giant has offered big discounts for its vehicles and saw its share of China's EV market almost double in August to 13.2%.

The data said Tesla sold close to 64,700 cars in China in August.

Consumers bought up even though China's general economic growth was weak.

Chinese automakers continued to bet on overseas markets as domestic growth eased.

Data showed exports surged 31% in August on the year.

Sales of new energy vehicles were also up more than a third last month.

Rivalries in China's auto market have grown more intense as makers struggle with weaker demand.

A price war started by Tesla at the start of the year also continues.