The sustained popularity of diesel among Europe's motorists continued this year, bolstering demand for platinum, which is used in emissions-reducing vehicle components.

In its Platinum 2003 Interim Review, Johnson Matthey report that the growth in diesel car sales remains the primary driver of demand for the precious metal.

According to the report, 'sales of diesels in January through to July increased by almost four per cent, at a time when the overall European car market was contracting.'

European carmakers' demand was predicted to climb by nine per cent by the end of the year (to 1.37 million ounces), while the market share of diesel-powered cars was projected to be 43 per cent by year-end.

In 1995, the proportion of cars powered by diesel represented just a fifth of the European vehicle market.

The author of the review, Tom Kendall, told Reuters that diesel cars could make up 50 per cent of the European market in three to four years.