08:14 PM EDT, 06/08/2022 (MT Newswires) -- Retail sales of passenger cars in China plunged 17% year over year in May to 1.35 million units, easing from the 34% drop in April, Xinhua News Agency reported Wednesday, citing data from the China Passenger Car Association.
On a month-over-month basis, sales rose 30%, the report said.
The development comes as China's auto market starts to recover from the recent COVID-19 outbreaks that dampened consumption in the world's largest car market.
Authorities from China's State Tax Administration recently slashed the purchase tax for passenger vehicles priced under 300,000 yuan ($44,000) by 50% to spur auto consumption.
China's biggest automakers include Dongfeng Motor Group (SHA:600006, HKG:0489), SAIC Motor (SHA:600104), Chongqing Changan Automobile (SHE:000625), BAIC Motor (HKG:1958), Guangzhou Automobile Group (SHA:601238, HKG:2238), Great Wall Motors (SHA:601633, HKG:2333) and FAW Group (SHE:000800).
Meanwhile, the domestic new-energy vehicle market is dominated by BYD, (SHE:002594, HKG:1211), Tesla China, GAC Aion, and SAIC-GM-Wuling, a joint venture among SAIC, General Motors and Wuling Motors Holdings (HKG:0305).