China has renewed a trade-in subsidy of up to 20,000 yuan ($2,730) to help underpin sales of fuel-efficient vehicles, including electric cars and hybrids.

China's car sales in December rose 12.2% from a year earlier, the fourth consecutive monthly gain, data from the China Passenger Car Association (CPCA) showed on Thursday. Sales totalled 2.66 million units last month and were up 5.

Sales of electric and hybrid vehicles jumped more than 40 percent in China last year, as demand for new energy models continues to surge and the sector remains entrenched in a gruelling price war.