American multinational automakers Ford and General Motors have reported a steep year-on-year decline in their respective car sales in China in the month of February.

Both corporations posted a nine percent decrease in their sales last month after a series of plans were implemented by the Chinese government late in 2015 to encourage demand for fuel-efficient vehicles.

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The mainland's automobile industry was able to recover from a plunge last year because of incentives offered by the government. However, the latest figures are raising a potential red flag, according to The Wall Street Journal, as it could possibly imply that the biggest car market in the world may be cooling down amid the economic slowdown.

Ford and GM have, respectively, reported an 18 and 11 percent drop in sales, respectively, in the first two months this year. Of note, January and February sales are usually accounted as one because of the New Year holiday interruptions. The official February sales of all automobile manufacturers in China will be released by the China Association of Automobile Manufacturers later this month.

Aside from the two, other car makers like Hyundai Motor Co. and Mazda Motor Corp. for SAIC Corp. also reported a seven percent plunge in sales.

In 2015, sales of automobiles in the mainland experienced a new high, skyrocketing to more than seven percent compared with that of 2014. However, the years 2013 and 2014 saw a slower growth rate.

The China automobile association forecasts a nearly 8 percent increase in sales of passenger cars this year. Car companies are busy establishing factories and hastening production in the country, in the hope that the rising middle class and rapid urbanization will drive a wave of demand for new cars.

January was a strong month in the country, with sales soaring up to more than nine percent from that of 2015. This is because buyers were in a shopping spree, getting new cars before the holiday began.

Tagscar sales, Ford, General Motors, automobile industry, china, Hyundai, Mazda