The growth of auto sales in China slowed sharply in January, affected by holidays and reduced tax discounts, data from the China Association of Automobile Manufacturers (CAAM) showed Monday.
A total of 2.52 million vehicles were sold in January, up 0.2 percent year on year, compared with a 9.5-percent rise in December 2016, the CAAM said.
Total output dropped 3.9 percent year on year to 2.37 million, according to the CAAM.
It said the week-long Chinese Near Year holiday and reduced tax cuts on car purchases for 2017 had impacted production and sales.
In October 2015, the government slashed the purchase tax on small cars by half to 5 percent. The tax break was applicable to cars with engine displacement of 1.6 liters or less and was in effect between October 2015 and the end of 2016.
The tax rate will rise to 7.5 percent for 2017 and 10 percent in 2018, authorities announced in December.
China, the world's largest auto market, saw auto sales growth hit 26.1 percent in September last year, the highest in more than three years, before winding down in the following months.
In 2016, auto sales reached a record high of 28.03 million, up 13.7 percent year on year.