China's vehicle sales continued to grow in February but at a slower pace with market demand weak during the Chinese New Year Festival.

February sales were 27 percent lower than in January and the increase was slower than January's 120 percent growth on the previous year.

Passenger car sales surged 55 percent year on year in February to 942,900 units. But that was down 28 percent from a month earlier.

Total vehicle sales, which include buses and trucks, climbed 46 percent from a year earlier to 1.21 million units, the China Association of Automobile Manufacturers said yesterday.

The CAAM said "The year-on-year growth remained strong and the long-term perspective was still positive."

China's total vehicle sales grew 45 percent last year to 13.6 million units, overtaking the United States as the world's biggest auto market.Most analysts expect the market will grow at a moderate pace between 10 to 15 percent this year.

Rao Da, head of China's Passenger Car Association, said that contrary to strong year-on-year growth, orders in February have been decreasing significantly and car makers slowed production on concerns of oversupply.

But he expects full-year sales to remain strong due to government incentives.Total sales for the first two months soared 84 percent from a year earlier to 2.87 million units, CAAM's report showed.

Cars with engine capacity of 1.6 liters or less continued to be in demand in February with the government extending tax incentives for small cars and handing out subsidies in rural areas. Small cars accounted for 72 percent of total car sales.

Vehicle exports grew 22 percent in February from the same period last year to 26,500 units. But this was 30 percent down on January's figure.