STORY: Car sales in China fell once again in May.

Data from the China Passenger Car Association showed sales were down around 22% from a year earlier at just over 1.5 million vehicles.

It marked the eighth straight month of decline.

The trade body also forecast full-year car sales to fall 11% - well down from the previous estimate of just 1%.

It added gasoline car sales fell largely due to oil price hikes linked to the Middle East crisis.

Sales were down just under a fifth to 7.18 million vehicles for the first five months.

The long slump shows a growing gap between China's headline economic growth and consumer demand for big items like cars.

Analysts argue weaker consumer confidence has hurt auto demand.

They also cite lower subsidies and a market that is mature after years of rapid expansion.

EV and plug-in hybrid sales fell 7.5% from a year earlier last month - the fifth straight month of declines.

Exports were a bright spot.

EV and plug-in hybrid electric vehicle sales abroad rose more than 112% in May from a year earlier.

That's compared with a near three quarters increase in overall car exports.

China's local downturn has hit global automakers at a key moment, especially Volkswagen.

The German auto giant has tried to defend its historic position as a leader in China through a faster and more localized EV strategy.