Daimler AG's Mercedes-Benz unit said on Thursday it sold 86 percent more cars in China in May, posting record monthly sales for a third straight month.

Mercedes-Benz, which competes with BMW globally, sold more than 5,200 cars in China in May, it said in a statement.

Sales, including its Smart minicar launched in the country in April, came to 21,700 unit in the first five months, up 49 percent from a year earlier, it said.

Car sales in China, the world's largest auto market, rebounded strongly from its all-time low in 2008, bolstered mostly by a raft of government policy initiatives, including aggressive cuts in sales tax for small cars and rebates for buyers in rural areas.

Klaus Maier, president and chief executive for Mercedes-Benz China operations, attributed the firm's record monthly sales to its broad product line-up which caters to different customer needs.

The German luxury car brand aimed to outperform growth in China's luxury car market for the full year, Maier said in April.