China's new car sales in January dropped from the same month last year, marking a third consecutive month of decline.

The China Association of Automobile Manufacturers announced on Friday that nearly 1.65 million new units were sold in the country last month. That is down 35 percent year-on-year.

The association attributes the decline partly to fewer working days. This year's Lunar New Year holidays began earlier than last year, resulting in a seven-day holiday in January. This led to the closure of factories and dealerships during the period.

In addition, government subsidies for car purchases as part of stimulus measures also ended in December.

With the easing of anti-coronavirus restrictions, China's corporate production and personal consumption have begun to show signs of recovery.

But the association says that weak domestic demand is delaying the recovery of car sales, and calls on the government to help the industry by continuing its supportive policies.