(Yicai Global) Nov. 6 -- Tesla has picked a unit under China's Aotecar New Energy Technology to make air conditioning units for some of its electric cars as it continues to build up links with the world's largest auto market.

Delaware-based AIR International Thermal US Subsidiary will build the parts for the American carmaker, Aotecar said in a statement yesterday. The deal will positively affect Aotecar's influence in overseas markets as it looks to expand and should bolster performance in the future, the statement added.

The parent, which specializes in researching air conditioning compressors, expects to generate CNY2 billion (USD289 million) in sales this year after making six million compressors. It acquired 100 percent of AIR in 2015.

Tesla has had a much closer affinity to China since it began ramping up sales there in 2016. The country has the world's biggest electric car sector, and more importantly for Tesla boss Elon Musk, is his company's second-most valuable market.

The Californian firm made USD2 billion in China in 2017, making up about 17 percent of its global sales, and earlier this year penned a deal to build its first overseas factory in Shanghai. The plant is expected to build 500,000 cars a year once it hits full capacity, as well as the batteries that power them.