With chip supply shortage easing and some new steps bolstering consumption, China's auto sales rose to 2.53 million vehicles in January, 0.9 percent higher than a year earlier, the first uptick after eight consecutive months of declines, according to data released by the China Association of Automobile Manufacturers (CAAM) on Friday. 

The sales of new energy vehicles (NEVs) in the world's biggest auto market reached 431,000 in January with an annual increase of about 140 percent, however, the number fell 18.6 percent compared with sales in December, ending the consecutive month-on-month sales growth in the past eight months, data from CAAM showed. 

The NEVs sales in December increased by 11.1 percent month-on-month, as buyers rushed in ahead of the subsidies cut that started in January. 

China cut subsidies on NEVs by 30 percent in 2022 and will withdraw all subsidies at the end of the year. 

Compared with the 3.31 million units of NEVs sold in 2021-subsidies are still valid in 2022 and with battery technology is improving, NEVs sales are expected to be more than 5.5 million units, Cui Dongshu, Secretary-General of another industry body- China Passenger Car Association said in an interview with 21st Century Herald newspaper.

(With inputs from Reuters)