Tesla sold 11,095 vehicles in May, triple the 3,635 units it sold in April, the association said.
China's passenger-car sales in June fell 6.5% from the year-earlier month to 1.68 million units, the association said. The market has been trying to recover from the coronavirus pandemic.
Retail sales were in line with expectations and signaled a continuing recovery in the passenger-car market, the association said during an online briefing, according to Reuters.
Sales of new energy vehicles, which include battery-electric vehicles and plug-in hybrid and hydrogen-fuel-cell vehicles, totaled 85,600.
In the pure battery-electric-vehicle sector, 67,000 units were sold in June, with Tesla accounting for 23% of the market, the association said.
The group expects new-energy-vehicle sales in the second half to rise significantly from the year-earlier second half, Reuters reported.
On Tuesday, Tesla shares topped the $1,400 mark as investors continued to bet on the world's most valuable car company. The jump followed last week's report of stronger-than-expected second-quarter shipments.
Tesla's second-quarter delivery tally of 90,650 units, a figure that topped Street forecasts, came amid a six-week shutdown of the carmaker's Fremont, Calif., production facility and a 34% decline in overall U.S. auto sales.
China demand was a factor, with Tesla's Shanghai factory now up and running and expected to churn out 4,000 vehicles a week in the coming months.
Emails from Founder and CEO Elon Musk suggest the data could provide yet another boost for the high-powered stock, which has more than tripled this year.
Shares of the Palo Alto, Calif., electric-vehicle company at last check were up 0.8% to $1,401.60.