Employees work at a hot rolling plant during a government-organised media tour to Baoshan Iron & Steel, a subsidiary of China Baowu Steel, in Shanghai, China September 16, 2022. REUTERS
Employees work at a hot rolling plant during a government-organised media tour to Baoshan Iron & Steel, a subsidiary of China Baowu Steel, in Shanghai, China September 16, 2022. REUTERS

China's car sales fell 12 percent in January from a year earlier, the first decline since September and the biggest drop in almost a year, as automakers braced for intense competition in the world's largest auto market.

Passenger vehicle sales tend to post big swings in the first two months, due to shifting timings for the Lunar New Year, which began in January this year versus February last year.

Some of this year's demand may have been frontloaded as automakers raced at the end of 2024 to meet annual sales targets while consumers rushed to take advantage of government subsidies before a subsidy extension was announced last month, said analysts.

Sales of electric vehicles and plug-in hybrids, known as new energy vehicles, grew 10.5 percent on the year to make up 41.2 percent of total sales, the second straight month that NEVs failed to outsell gasoline cars, data from the China Passenger Car Association showed on Tuesday.