Sales of domestically made cars rose 12.4 percent month-on-month and 24.7 percent year-on-year to 827,600 units in February, the China Association of Automobile Manufacturers (CAAM) said Tuesday.

The association said sales were buoyed by government stimulus policies. On Jan. 14, China announced a plan to halve the purchase tax on passenger cars with engine displacements of less than 1.6 liters to 5 percent, effective Jan. 20.

"Passenger autos with engines under 1.6 liters accounted for 70 percent of the passenger vehicle market, so the bounce of small-engine cars played a critical role in the revival," Zhu Yiping, CAAM assistant secretary general, told Xinhua .

Domestic car production was 807,900 units, up about 23 percent from both a month and a year earlier.