Reuters reports that new energy vehicle (NEV) sales in China surged 26% on year to 109,000 units in August for their second consecutive month of gain, a promising sign for automakers that have invested heavily in the world's biggest market for electric vehicles (EVs).

For the full year, NEV sales are likely to reach 1.1 million vehicles, down around 11% from last year, said the China Association of Automobile Manufacturers (CAAM) on Thursday.

NEVs include battery-powered electric, plug-in gasoline-electric hybrid and hydrogen fuel-cell vehicles.

China's overall auto sales in August rose 11.6% to 2.19 million vehicles from the same month a year earlier, the fifth consecutive month of gain as China comes off lows hit during the coronavirus lockdown in the first few months of the year.

Sales are still down 9.7% for the first eight months of the year at 14.55 million vehicles, CAAM said.