(Yicai Global) April 25 -- China's passenger car sales fell by a quarter in the first three weeks of this month, a leading industry group said, pointing to a 10th consecutive month of declines.

Some 33,508 vehicles were sold on average each day through April 19, the China Passenger Car Association said in a statement. Eight percent growth in the first week was driven by a cut in value-added tax, the CPCA said, adding that the automotive sector still faces huge pressures.

The government trimmed VAT for manufacturers to 13 percent from 16 percent on April 1, so car sales at the end of last month were shifted to the start of April. Even so, the domestic auto market is in a downturn and profits are narrowing, the CPCA said.

Restrictive policies in some major cities are curbing sales. Buying in large cities with no restrictions, including Chengdu, Chongqing, Wuhan and Xi'an, has significantly exceeded that of Hangzhou and Guangzhou, the CPCA said. Cities that impose limitations should improve their policies and transport management to phase out such constraints, it added.

Some provinces and cities started to implement the National VI Emission Standard this month and the promotion of the new standard may greatly affect production, sales and inventory, the CPCA said.

Passenger vehicle sales in China, the world's biggest auto market, sank for a ninth straight month in March, dropping 6.9 percent from a year earlier, the China Association of Auto Manufacturers said earlier this month.

Editor: William Clegg