(Bloomberg) -- China’s auto sales are expected to decline this month due to disruption from the Lunar New Year holiday and customers holding out for more price cuts.

Vehicle shipments are projected to drop 15.7% in February from the same period last year, according to preliminary data released Thursday by China’s Passenger Car Association. Demand for electric vehicles is also slowing.

BYD Co. earlier this month slashed the price of its popular Qin Plus sedan by 10,000 yuan ($1,390), sparking similar cuts by at least half a dozen manufacturers. But the price war may have the unintended consequence of dampening demand as customers adopt a wait-and-see approach, hoping for even better discounts, PCA said.

Demand for EVs has also been affected by reports of drivers struggling with range anxiety and long waiting times at chargers during the New Year holiday, with freezing temperatures in many parts of the country. EV sales in February are expected to slump 43% from January, PCA said.

Read More: Long Charging Lines, Snow Stymie EV Drivers in China New Year

The competition in China’s auto market remains intense. Shanghai-based manufacturer Human Horizons Group Inc., which produces the premium HiPhi brand, has halted production for six months and has been closing stores due to low sales.

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