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China's vehicle sales climbed by 11.2% year-on-year to 2.686 million units in May 2025, following a 9.8% rise in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicles (NEVs) jumped by 36.9% in May to 1.307 million units, the third consecutive month of increase, accounting for 48.7% of total new vehicle sales last month. Considering the first five months of 2025, car sales increased by 10.9% to 12.75 million units, with NEVs surging 44% to 5.61 million units. NEV sales accounted for 44% of total new car sales. On a monthly basis, total car sales rose 3.7% in May, rebounding from an 11.2% plunge in April. For 2025, car sales are expected to rise by 4.7% to reach 32.9 million units, with NEVs predicted to grow by 24.4% to 16 million units. Last year, total vehicle sales increased by 4.5% to 31.436 million units, easing sharply from a 12% surge in 2023.