(Yicai Global) June 12 -- New regulations may help to buoy China's auto industry in the second half of the year, following an 11th straight month of declining sales and production in May, a top trade group said today.

China's passenger car market, particularly for new energy vehicles, may be revitalized in the July to December period when the number of models that comply with new emission standards will increase and tax breaks will take effect, the China Association of Automobile Manufacturers said in a report.

Sales of all types of passenger vehicles in May dropped 16.4 percent from a year earlier and 3.4 percent from April to 1.91 million. Production slumped 21 percent year-on-year and 10 percent month-on-month to 1.8 million units.

For the January to May period, sales and production both edged down 13 percent from the previous year. 

Weak market demand is due to a slowing economy, the impact of emissions standards in some regions and poor consumer confidence, the report added. 

China's new energy vehicle market swam against the tide as production rose 17 percent to 112,000 units in May, but the pace of growth slowed 8.1 percentage points from the previous month. Sales climbed 2 percent to 104,000, but growth fell back 16 points from April.

Editor: Emmi Laine