Domestic sales of new vehicles rose 12.6 percent in October from a year earlier, marking the highest margin of growth in 12 years and nine months, an industry body said Monday.

Sales of new vehicles excluding minivehicles totaled 263,506 units, the Japan Automobile Dealers Association said, pointing to tax breaks and government subsidies for environmentally friendly cars.

It was the sharpest rise since the 14.9 percent rise in January 1997.