BMW revealed a host of new models and added to a wave of manufacturer demands for a Government rethink of its approach to diesel under the new CO2-based company car tax regime.

The German firm hosted 23 UK premieres, along with the new 4.4-litre X5 Sports Activity Vehicle that went on sale last week. Among the debuts was the 343bhp M3 coupe, on sale in early 2001, the Z9 convertible concept car and the 750hL, the zero emissions car powered by liquid hydrogen.

Other premieres included the facelifted 5-series saloon and Touring, powered by new 2.2, 2.5 and 3.0-litre straight six petrol engines and a new 2.5-litre straight six diesel engine. Exterior enhancements include new look headlamps. The same straight six engines are also being launched in the 3-series, on show at the event, while the Z3 also receives the 2.2-litre and 3.0-litre petrol units.

Two new examples of the firm's diesel models include the four-cylinder 320d Touring and the 'muscle car' 330d Sport went on show.

Jim O'Donnell, managing director of BMW (GB) said: 'It looks to me that stability has been restored in the UK market and I believe that the outlook is encouraging.'

Certainly BMW's sales figures, particularly for fleets, prove him right as the firm saw 3-series sales rocket 45.4% to 5,099 in September. Year-on-year BMW fleet sales are up 35% to 29,976 from 20,388. The 3-series is now the 10th best-selling fleet model of the year, ahead of the Renault Clio, Peugeot 206, Renault Laguna and Volkswagen Golf.

Alan Waldie, BMW's corporate operations manager, said: 'Our sales to 25-plus fleets are up 45% year on year, despite there having been so much uncertainty. We have been very fortunate in the support we have found in the corporate market place.

'Rival manufacturers, such as Ford, are getting much better in their offering to the upper and lower medium sector, but the better they become, the more drivers are asking why they should not go that bit further and opt for a real prestige brand.'

BMW fleet sales are expected to grow further with the launch of the new 3-series Compact next year, while a new small car range - widely billed as the 2-series - will also increase its hold in the fleet market.

And as BMW sales for diesel models hit 2,993 for the year, Waldie joined calls for the Government to rethink its attitude to diesel vehicles, which have a 3% tax supplement imposed.