Almost 100,000 new cars were sold last month, and sales have climbed 8.6 per cent since October last year.
Whilst the figures sound good news for auto manufacturers, the Australian Bureau of Statistics says flooding in Thailand last year may have dented supply in 2011, producing skewed results for this year.
Ninemsn reports seasonally adjusted sales were down 2.8 per cent compared to the previous month.
According to new data car sales in Western Australia have been the strongest, rising to 21.5 per cent on the back of the resources industry.
Queensland and New South Wales posted more conservative gains of six and four per cent respectively.
Sports car sales are also up more than 55 per cent this year, with a 70 per cent jump last month over the number of deliveries in 2011, News Limited reports.