New vehicle sales in China jumped by 9.8% to 2.09m units in May 2016, compared with flat year-earlier sales of 1.90m units, according to the China Association of Automobile Manufacturers (CAAM).

Consumer spending in the country has remained buoyant despite a slowdown in some key sectors of the economy in recent months, including industrial output and exports. The vehicle market also has benefited from a sales tax discount on small engine cars, as well as dealer incentives reflecting intense competition.

Sales of passenger vehicles rose by over 11% to 1.79m units last month, while commercial vehicle sales were little changed at 300,000 units, according to CAAM data.

Total vehicle sales in the first five months of the year were 6.9% higher at 10.74m units, compared with 10.05m units in the same period of last year. 
GM's Chinese joint ventures enjoyed a 16.9% rise in combined sales to 295,282 units last month, while cumulative five-month sales amounted to 1.54m units.

Toyota's sales rose by 12% to 102,900 units in May and by 20% to 495,000 units in the first five months of the year, while Ford's sales were up by 4% at 91,013 in May and by 1% to 459,982 units in the five-month period.

Hyundai sales increased for the second consecutive month in May, after sharply lower first-quarter sales. Volumes increased by close to 25% to 100,310 units, according to local reports.

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