Chinese manufacturers produced three times more new energy vehicles this May than they did last year, the Ministry of Industry and Information Technology said on Wednesday.
China's auto sales hit a new low over a three-month period in May and experts do not expect rapid recovery in the near future.
China's automobile market contracted in May as sales declined for the second-consecutive month by 4.55 percent month on month to 1.9 million units.
The stockbroker is beating the car salesman in the battle for Chinese wallets.
Automakers failed to jumpstart the slowing growth in car sales in China last month despite offering steeper discounts, as consumers opted to defer purchases and invest in the world's biggest stock-market rally instead.
For the first time in 10 years, car imports have dropped in both demand and supply in the Chinese market.
General Motors and its joint ventures saw record China sales of 1,472,186 vehicles in the first five months of the year, an annual increase of 5.1 percent, after drastic price cuts. However, sales in May dropped 4 percent year-on-year to 252,567.
April's Chinese light vehicle results echoed previous concerns as sales of locally made models grew by as little as 2 percent from a year earlier to 1.91 million units.
Major automakers started slashing prices on a slew of models in mid-April to shift larger volumes of cars, after sluggish sales in the first four months in the cooling Chinese market.
South Korean car maker Hyundai expects to see its production capacity in China rival the volume in its home country by 2017.
Global automotive sector insiders said they have strong confidence in the merger and acquisition market in the upcoming year, with China being one of the markets that may see the most M&A activities.
The Chinese automobile market reported a sharp contraction in April as sales declined 11 percent month-on-month to 1.99 million units, data showed Monday.
Passenger vehicle sales in China rose at the slowest pace in five months as weaker economic expansion hurt demand for big-ticket purchases.
German automaker BMW Group reported new record sales volume, revenues, and profit before tax in the first quarter of 2015.
China's auto sales are expected to exceed 25 million units in 2015.
China's auto industry's profits have been on a downward trend this year, plagued by a slowing market and plunging car prices.
German automaker Audi AG sold 177, 950 cars in March, delivering more automobiles in a single month than ever before.
Passenger-vehicle sales in China gained 12 percent last month, led by demand for sport-utility vehicles and minivans in the world's largest auto market.
China's auto sales rose 3.9 percent year on year to 61.53 million units in the first quarter.
China's new energy vehicle production jumped threefold to 25,400 vehicles year on year in the first quarter of 2015.