BEIJINGSHANGHAI, June 8 Reuters Passenger vehicle sales in China rose 7.3 in May from a month earlier, industry data showed on Thursday, as the government extended tax incentives to shore up demand amid a flagging economic recovery.

Sales totalled 1.76 million vehicles in May, the China Passenger Car Association CPCA said. For JanuaryMay, sales were up 4 at 7.74 million cars versus the same period a year earlier .

Sales of new energy vehicles NEVs, which include batterypowered cars and plugin petrolelectric hybrids, rose 10.5 in May from April and accounted for 32.9 of total May sales, CPCA data showed.

Tesla sold 77,695 Chinamade vehicles in May, CPCA data showed earlier in the week. The industry body didn39;t offer a breakdown of export data by auto brands.

The discounting push since March has gradually faded, but price cuts remain appealing for Chinese consumers.

Additionally, a raft of new products and lowpriced new models have lately been rolled out, attracting buyers back to the market, Cui Dongshu, the association39;s secretary general, told a press briefing.

Falling NEV prices due to discounting and tumbling battery costs have yet to be reversed by Tesla39;s shift toward raising prices in countries including China. Nonetheless, NEV sales which typify bigticket spending have bucked a tepid rebound in overall consumption after China abruptly ended COVID19 containment measures late last year.

A weak recovery in auto sales has weighed on profitability. Some…