* Sales up 32 percent in May, 31 pct in Jan-May
* Outperforms Toyota in May, overall market in Jan-April
* Surge due to stream of new models -Honda spokeswoman (Adds new models, industry comparison, context)
By Jake Spring
BEIJING, June 2 (Reuters) - Honda Motor Co Ltd booked a 32 percent surge in China sales in May as it continued to benefit from new models in a slowing market where the Japanese automaker has been out-selling rivals.
New versions of the Vezel crossover and Fit sub-compact launched last year helped January-May sales rise 31 percent, compared with just 4.4 percent at compatriot Toyota Motor Corp .
Honda's sales were similarly up 31 percent in January-April versus 7.7 percent for the overall passenger vehicle market, according to the Chinese Association of Automobile Manufacturers, which has yet to report May data.
The upbeat figures contrast with a wave of recall headlines as quality issues plague the automaker elsewhere in the world.
Honda forecast flat profit for the year started April due to the cost of recalling vehicles with suspected faulty air bag parts from Takata Corp, taking its global recall to 20 million since 2008.
A Honda spokeswoman on Tuesday said a steady stream of new models pushed up sales in China, with the Vezel - launched in October - accounting for one in eight Honda-brand cars sold in the country in May.
Other models launched last year also enjoyed healthy sales with the Fit rising 350 percent in the year through May and Odyssey multi-purpose up 171 percent.
Honda plans to launch five more new or updated models this year, the spokeswoman said.
Honda makes cars in China through joint ventures with Dongfeng Motor Group Co and Guangzhou Automobile Group Co . (Editing by Christopher Cushing)