BEIJINGSHANGHAI, April 10 Reuters Growth in sales of China39;s passenger vehicles was flat in March from a year earlier, industry data showed on Monday, as more price cuts by auto brands and the rollout of incentives by local governments helped to support demand.

Car sales in March were 1.61 million units, the China Passenger Car Association CPCA said. In the first three months, sales had fallen 13.4 to 4.33 million units, it added.

Sales of new energy vehicles NEVs, which include pure battery electric cars and plugin hybrids, rose 21.9 in March and accounted for 34 of the month39;s sales, the data showed.

BYD led the segment with market share of 35.5, while Tesla accounted for 14.

There is no doubt that April will see a good recovery in sales growth, Cui Dongshu, the association39;s secretary general, told reporters, citing a low base in the corresponding period last year.

China imposed strict COVID19 lockdowns in major cities, such as its commercial hub of Shanghai, in April 2022.

Prices of NEVs have been falling fast, thanks to discounting and tumbling battery costs, stepping up pressure on internal combustion engine ICE vehicles and the legacy brands behind them.

More than 40 brands have joined a price war started by Tesla this year, among them Nissan, Toyota and Volkswagen, which have started offering aggressive discounts on their bestselling ICE models to defend market share.

Local authorities, who see the auto industry as a pillar of the economy, have also…