A French 'scrappage' scheme introduced in December is said to have improved cars sales by 40 percent.
The €1,000 euro incentive is expected to be a factor in a third of new car sales going onward through 2009.
The subsidy is offered to buyers who scrap a 10 year-old car and buy a new one with CO2 emissions lower than 160 g/km. It gets better if the new car has emissions below 120 g/km because the seller gets another €700 off the car.
Carmakers are offering matching figures, and in some cases the total savings can be up to 40 percent off the marked price.
A boost to the French market by 5-10 percent during 2009 could mean up to 200,000 extra car sales for Renault alone.
