The automaker produced 125,903 vehicles in February, down 19 percent from the same period last year, according to a statement to the Shenzhen stock exchange.

Changan Auto, which is based in the southwest China city of Chongqing, is a major producer of own-brand vehicles. Last year, the company sold 2.4 million vehicles, of which 1.8 million units were own-brand vehicles.

Sales of China's domestic brands went soft this year after the government raised the sales tax on small cars and eliminated its scrappage incentive.

That may make it difficult for Changan to raise sales 4 percent this year, as it has projected. The state-owned automaker maintains a three-way joint venture with Ford Motor Co. and Mazda Motor Corp. Last year, Changan also formed a joint venture with PSA Peugeot Citroen to produce upscale passenger cars and light commercial vehicles.