Asia Tech Wire (Sep 10) -- BYD, China's largest electric car maker, has raised its annual sales target to 4 million units.

Tim Hsiao and other automotive sector analysts at Morgan Stanley noted in a report Monday that BYD raised its annual sales target to 4 million units, according to BYD management remarks.

BYD's previous sales target guidance was about 3.6 million units.

The report noted that BYD's outlook has become more optimistic, linked to increased purchases of electric and hybrid vehicles by Chinese consumers.

Retail sales of new-energy vehicles (NEVs) topped 1 million units for the first time in August, with a market share of 53.8%, cementing their dominance over fuel vehicles, according to monthly data released by the China Passenger Car Association (CPCA).

BYD's new sales target, as well as expectations for higher sales and margins in the second half of this year, have to do with better-equipped models, Morgan Stanley analysts noted in that report.