PSA Peugeot Citroen sees total car demand in Europe in the second half of the year falling less than expected, chief executive Philippe Varin said.

It had been expecting demand to drop 7% in the six months to 31 December compared with the same period last year.

“We are in line, actually better than this forecast,” Varin told Reuters during a visit to a technical centre outside Paris.

The event was attended by France’s industry minister Christian Estrosi who said he hoped the French government would decide by the end of October on the future of the car scrapping scheme, introduced last year.

Estrosi also said the government was considering tilting the scheme in favour of clean vehicles.