BMW AG will begin selling diesel-powered cars in the United States next year. "Next year we are also going to offer our diesel vehicles in the U.S. -- another step in protecting the environment," CEO Norbert Reithofer said in a speech to the Geneva Auto Show.

He said about 40 percent of all BMWs sold last year, almost half a million vehicles, were equipped with diesel engines, which are more fuel-efficient than petrol-fuelled cars.

Diesel cars account for a minimal part of the U.S. market but are popular in Europe due to their higher fuel efficiency. Also starting 2009 they will start offering hybrid cars: the premium car segment would likely lead to production in two years' time. "We will achieve production maturity of these (hybrid) components in 2009."