China's car sales fell 12% in January from a year earlier, the first decline since September and the biggest drop in almost a year, as automakers braced for intense competition in the world's largest auto market.

China's automobile market experienced a 12% decline in car sales in January compared to the same month a year earlier. This is the first drop since September and the most significant one in nearly a year.

Retail sales of passenger cars fell 12.1% in January from a year earlier, the China Passenger Car Association said Tuesday.

Sales of electric vehicles and plug-in hybrids, known as new energy vehicles, grew 10.5% on the year to make up 41.2% of total sales, the second straight month that NEVs failed to outsell gasoline cars, data from the China Passenger Car Association (CPCA) showed on Tuesday.