A man looks at a BYD Tang during the press day of the 100th Brussels Motor Show in Brussels, Belgium, Jan. 13, 2023. Photo:Xinhua

China's new-energy vehicle (NEV) market saw significant growth in sales in May, industry data showed, a sign of the sector's rapid development and strong consumer demand.

From May 1 to 26, retail sales of NEVs rose 27 percent year-on-year to 574,000 units, and they were also up 2 percent month-on-month.

Cumulative retail sales this year have risen 32 percent year-on-year to 3.025 million units, according to data released by the China Passenger Car Association on Wednesday.

From May 1-26, total NEV wholesale hit 620,000 units, a year-on-year increase of 25 percent.

Since the beginning of this year, 3.36 million NEVs have moved through wholesale channels, a year-on-year increase of 29 percent.

Thanks to the May Day holidays and auto shows held across China, consumers' enthusiasm for car purchases has shown conspicuous growth this month. Nationwide marketing campaigns, combined with manufacturers' incentives, have effectively boosted sales.

"Over the past few years, Chinese NEV brands have developed a globally leading technological advantage. Domestic demand for NEVs is also very strong and will continue to grow," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Wednesday.

"Domestically, we dominate the NEV market. Internationally, our exports challenge Japanese and South Korean brands in the low- and mid-range markets and make significant inroads into the high-end segment controlled by Western brands," Liu Dingding, a technology industry observer, told the Global Times on Wednesday.

Chinese vehicle conglomerate BYD launched the latest plug-in hybrid car system on Tuesday, a milestone in the world's hybrid vehicle industry.

The new system boasts the world's highest engine thermal efficiency at 46.06 percent, the lowest fuel consumption at 2.9 liters per 100 km in depleted battery mode, and the longest combined range of 2,100 kilometers.

"The core competitive advantage of Chinese NEVs lies in their advanced technology that helps minimize production costs while keeping the trust of customers for their good quality and service. China's NEV industry may further widen the gap with competitors in the global hybrid market," Wu said.

Many Chinese brands have unveiled updated models with longer ranges of more than 2,000 kilometers, including Changan Auto, SAIC Motor, GAC Motor and Chery. 

Thirty years ago, China attracted foreign investment to develop its automotive industry by offering access to its vast market in exchange for technology. Now, Chinese automakers can export their technology, Wu said.

While Chinese vehicles are highly competitive and have achieved strong sales domestically and internationally, they still welcome free and fair market competition, experts said.

"If foreign brands adopt an open and cooperative attitude for a win-win outcome, China's automakers could work together with international manufacturers for joint development, driving global industry upgrades and accelerating the transition to an era of electrification and intelligence," Liu said.

"However, some Western voices say we have 'overcapacity,' partly due to their inadequate infrastructure and protectionism. Despite the rhetoric, we will continue to develop NEV technology that suits our needs," Wu added.