Car sales in western Europe fell last month, meaning lower demand for platinum products such as catalytic converters and diesel filters.

According to new data, new car sales were down by 3.7 per cent in March, thought to be due to sluggish demand and the Easter holidays occurring early.

The low figures follow on from a weak start to the year, after car sales saw a sharp boost at the end of 2004.

New car registration decreased to 1.64 million in March, which is usually the busiest month of the year for such sales in Europe.

"While these figures are heavily influenced by the Easter break falling this year in the month of March...they also confirm the sluggish economic environment in the first quarter of 2005," industry association ACEA said in a statement.

Carmakers are now hoping a host of new models will boost sales as the year continues.

Car brands which experienced a particular slump in March include Fiat, Peugeot, Citroen and Renault.

Platinum, palladium and rhodium are all bought by the auto industry to make autocatalysts for modern cars that control harmful emissions.