SALES of new vehicles expanded 23 per cent to 46,092 units in October, from 37,512 units a year go, thanks to improved performance from all segments in the market place.

The higher volume helped narrow the year-to-date sales contraction to just 5 per cent from 8 per cent during the January-September 2009 period.

For the first 10 months, total sales stood at 443,711 units against 467,452 units registered in the same period last year.

The outlook for November should be better as market and consumers' sentiment remain favourable, buoyed by year-end sales campaign, the Malaysian Automotive Association (MAA) said.

Industry observers said the launch of the new Perodua multi-purpose vehicle (MPV) next Monday should help boost sales, particularly in the last month of the year.

Perodua will unveil the MPV on November 23 but has already taken orders for the 1.5-litre vehicle since November 13.

"Market recovery has reached close to the level before the impact of the global economic downturn in October 2009," the MAA said in its interim sales and production data release yesterday.

"The higher volume in October year-on-year was due to improved sales of MPVs, passenger cars, buses, SUV (sports utility vehicles) 4x4 pick-ups and window vans," it added.

More vehicles were produced than sold in October, with the output standing at 48,191 units, up from 46,281 units in the same month in 2008.

In the first 10 months, total production stood at 404,681 units but was still lower than the 449,988 units recorded in the corresponding period in 2008.