Spain’s scrappage scheme is continuing to boost demand for new cars as sales surged 39.3% last month compared to April last year to 93,637.

Carmakers there are asking for the incentive scheme, which is due to run out at the end of next month, to be extended.

In France, where scrapping incentives were reduced at the start of the year, passenger car registrations rose 1.9% in April to 191,000 units, compared with 13% growth in March.

Industry association CCFA, said that the French market was seeing the impact of the gradual reduction in the scrapping incentive, with a decrease in the small-car category, which benefitted most from the programme.

A 32.2% increase in sales of light commercial vehicles during April was seen by the industry association as a good sign for the economy at large and that businesses are starting to grow.

PSA Peugeot-Citroen  saw sales of its Peugeot brand cars rise 24.2% compared with the same month last year, while Citroen brand cars were down 8.6%.

Renault sales grew 17.2%, with Renault brand cars up 9% and sales of Dacia models more than doubling. Renault has forecast a 10% drop in the European car market as a whole for 2010.