Automotive industry giants Toyota and Honda have signalled their intention to focus on the European diesel sector as a means for growth at the Paris Car Show.

Toyota has unveiled details of what it says is the world's cleanest diesel engine, while Honda says it is showcasing a diesel-powered FR-V minivan and a CR-V sport-utility vehicle at the convention.

Toyota president Fujio Cho told Bloomberg that diesel vehicles had helped the firm improve its performance in the European sector, expressing confidence at securing the third consecutive operating profit in Europe this fiscal year.

"The European market is vital for Toyota to really become a global player," explained Mr Cho.

"We need to offer more products that are suited to each market like diesels."

Toyota has detailed plans to release a Lexus luxury diesel by 2006, while Honda says it will have four diesel-powered vehicles in 2005.

Honda general manager Toshiaki Nakagawa says he is seeking to increase sales of diesel vehicles to 30 per cent next year, up from the company's current level of ten per cent.

Over 40 per cent of all vehicles sold in Europe each year have diesel engines.