Passenger Vehicle Sales Jump 23% in China

Carmakers sold 1.3 million cars, SUVs and MPVs in China in May compared with 1 million a year earlier, according to the China Assn. of Automobile Manufacturers.

Total vehicle sales, including commercial trucks and buses, rose 16% to 1.6 million units, CAAM reports. The group notes that volume was unusually low in May 2011 because of disruptions caused by Japan's earthquake and tsunami in March.

Even so, last month's gains, coupled with a 13% increase in April, gave carmakers hope that the Chinese market is recovering from a weak first quarter when demand dipped 1%.

In the first five months of 2012, motor vehicle sales edged up 2% to 8 million units, CAAM says. Demand for passenger vehicles in China increased 5% to 6.3 million units.