China's auto sales sink in February as phase out of subsidies for trade-ins hits demand

China has reported that passenger car sales plunged 34% in February from a year earlier. The China Association of Automobile Manufacturers said 950,000 cars were sold, down from nearly 1.4 million vehicles sold in January. Overall passenger car sales including exports dropped more than 15%, despite a nearly 60% increase in shipments to overseas markets. Chinese automakers have been struggling with weak demand as the government has been phasing out trade-in subsidies to encourage purchases of electric vehicles. The Lunar New Year festival, China's biggest holiday, took place in February, which also likely hurt sales.