New vehicle sales in Indonesia rose 4.6% month on month to 35, 992 units in October, as a recent drop in interest rates spurred demand for car loans, Dow Jones Newswires reported.

According to data issued on Tuesday by Gaikindo, Indonesia's vehicle producers' association, passenger car sales rose 24.8% to 4,942 units in October from 3,959 in September while analysts told the news agency passenger car sales are a barometer of consumer confidence.

Commercial vehicles accounted for 31,050 units, up 2.0% from 30,434 units a month earlier, the association said according to Dow Jones, adding that, so far this year, Indonesian consumers have bought 304,539 new vehicles.

The country's largest vehicle maker, PT Astra International, saw a 7.9% month on month increase in domestic sales to 15,035 units in October - the company has a joint venture with Toyota to make and distribute the Japanese company's vehicles in Indonesia, Dow Jones said.