Nissan has launched a diesel version of its Sunderland-built Micra, in a bid to carve a bigger slice of the European market.

The hatchback model will feature a direct injection 1.5 litre unit, supplied by Nissan's trade partner, Renault, and is intended to add appeal in continental Europe, where diesel sales outstrip those of petrol-powered cars.

Nissan estimates that 45 per cent of cars bought in Europe next year will have diesel engines. Already, one in four cars sold in Britain are powered by the economical fuel and the market is growing by six per cent a year here.

Colin Dodge, managing director of Nissan Manufacturing UK, said: "Diesel fuel is now the majority product in many parts of Europe. That is why we looked hard at our product range and introduced new diesel models across the board with engines from Renault.

"We are now in a position to fight other European car offerings on their level.".

Meanwhile, the new Nissan Micra has been well received by car buyers since going on sale in Britain on January 15.

Advance orders of £100m across Europe were secured within seven days of the car becoming available, with drivers in the UK snapping up 5,000.

There is a backlog of 22,000 orders, so Micra production at the Sunderland plant will be stepped up from 103,000 in 2002 to 180,000 this year.

Mr Dodge said: "The diesel option comes as we are looking to almost double Micra production this year. Basically, we need to make as many Micras as we can."

The direct injection diesel option is available on S and SE Micra models, starting at £8,795 for the three-door model.

Nissan says the engine will return 61.4mpg, with a more powerful, intercooled unit due in October.