The biggest car market in Europe has seen a boost in sales, something that is set to have a positive effect on the platinum industry.

Germany has announced that car sales rose 11 per cent during August, thanks to a range of new models introduced by manufacturers.

The increase will have an important impact on the platinum market, as the metal is heavily used in catalytic converters.

Germany's automotive industry association, VDA, revealed in a statement that sales had climbed during the month to 245,000 vehicles.

Overall, the group revealed that the first eight months of 2005 had seen a 3.2 per cent increase compared to the same period last year, rising to 2.2 million vehicles.

Bernd Gottschalk, president of the association, told Bloomberg that it is the "novelty effect" created by companies introducing a number of new cars to the market that had helped see a surge in sales during August.

VDA also reiterated its earlier expectation that car sales in Germany will increase overall this year to 3.3 million units.


Ÿ Adfero Ltd