New Delhi, March 12 -- China's domestic passenger car sales fell sharply in February from a year earlier, industry figures showed Wednesday, reflecting weakening demand as some trade-in subsidies are phased out.

Only 950,000 units of passenger cars were sold in China last month, according to the China Association of Automobile Manufacturers, down from nearly 1.4 million vehicles sold in January. It was the fourth straight month of year-on-year declines.

Overall passenger car sales including exports dropped 15.4% year-on-year, even as shipments overseas jumped 58% to 586,000, highlighting the challenges for Chinese carmakers trying to offset sluggish domestic sales by expanding into foreign markets.

Automakers have been struggling with ...