China new car sales up 22.6pct in May image

New car sales in China rose 22.6 percent in May to 1.28 million units from a year earlier, the China Association of Automobile Manufacturers (CAAM) said. That beat the 1.2 million average of seven analyst estimates compiled by Bloomberg.

From January to May, deliveries climbed 5.5 percent to 6.33 million, continuing an uptrend which started in April.

The strong rebound by Toyota Motor and Honda Motor, which both suffered severe shortages of parts a year ago after northern Japan’s devastating earthquake and tsunami in March 2011, also pushed up the monthly tally.

Rao Da, secretary-general of the association, attributed the higher sales to the launch of new models and the Beijing auto show which unleashed more pent-up demand to buy cars.

Production of passenger vehicles rose by 21.5 percent in May to 1.26 million units, bringing the supply surplus for the past five months to 447,440 units from 364,958 units in April.

China Car Sales May - Graph