Vehicle sales in China rose by 17.8% year-on-year in February to 1.6m vehicles according to the China Association of Automobile Manufacturers (CAAM).

However, the timing of the annual moving Chinese New Year has a big impact on the monthly sales numbers. Taken together, vehicle sales for the first two months stood at 3.75m units, some 10.6% up on last year.

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The data also shows that Chinese domestic brands are continuing to lose out to international brands in the Chinese car market. Japanese brands are also showing growth after a period when their sales were hit by a diplomatic dispute between the two countries.

“China’s homegrown auto industry is currently facing huge challenges,” said Dong Yang, secretary general of CAAM. 

China’s car market is expected to post 10% growth in 2014.

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