Autotrader.co.uk aims to help franchised dealers' raise new and used car sales with a series of online product launches.

Autotrader Interactive managing director Peter McCullough said the company would diversify into digital media, including TV - which he expected to “overtake the internet within 18 months” - and Wap phones.

The company has signed an agreement with communications giants Telewest and NTL to launch a digital TV venture, which will go live in September. “Digital TV could double our search volumes,” said Mr McCullough.