Australian sales of new vehicles in October posted a 5.3 per cent growth performance over a year ago, data from the Australian Federal Chamber of Automotive released Friday showed.

New vehicle sales in October reached to 85,196 units spurred by stable fuel prices and a perceived return of business confidence, the Australian Federal Chamber of Automotive said. The figure was also the highest since 2007.

"Manufacturers are reporting a steady increase in demand, placing the industry in a strong position to reach our target of one million sales for the calendar year," Ian Chalmers, chief executive of the Australian Federal Chamber of Automotive, said.

The Australian Federal Chamber of Automotive also noted sizable gains across all classes compared with the same month last year.

Sales of sport utility vehicles gained 5.4 per cent compared to October 2010. It followed increases of 5.6 per cent on September and 19 per cent in August. Sales of light and heavy trucks also boasted sizable gains.

However, cumulative sales for the year were negative compared last year. So far, only 837,324 new vehicles have been sold, a fall of 2.8 per cent or 861,645 new vehicles a year ago.