DIESEL cars are increasing in popularity despite an overall fall in the number of registrations, according to the Society of Motor Manufacturers and Traders (SMMT).

September marks the 60th consecutive month of diesel growth even though registrations slipped 3.2 per cent and the monthly figures were down 5.2 per cent on September 2004.

Christopher Macgowan, SMMT chief executive, said: "The new car market is fiercely competitive this year and manufacturers are fighting hard for every sale, particularly to private customers.

"However, while overall registrations are down, diesel has continued what seems an inexorable rise in popularity. That may well have a lot to do with soaring fuel costs and the economy benefits that diesel brings to drivers."