Volkswagen will be offering customers in Germany discounts of up to 10,000 euros (£9,000) if they trade in their old diesel vehicles along with buy a fresh car.
VW will also offer incentives of 1,000-2,380 euros for customers buying alternative energy vehicles, such as electric along with hybrid cars.
The incentives will run until the end of This kind of year.
VW said the move might “make a marked contribution to the improvement of air quality in cities.”
the automobile giant’s different brands, including Porsche, Audi, Skoda, Seat along with VW’s commercial vehicle subsidiaries, will also be offering their own versions of the incentive.
VW brands will consider the merits of such a scheme from the UK, a spokesman told the BBC.
Volkswagen agreed to bring from the German plans last week after a top level summit between politicians along with the country’s leading carmakers, including BMW, Daimler along with Opel.
Diesel cars have been from the spotlight over high levels of nitrogen oxide emissions.
Two years ago, VW became embroiled in a scandal when This kind of was discovered This kind of had cheated emissions tests of which affected 11 million vehicles worldwide.
Carmakers, including VW, BMW, Daimler along with Opel, have offered to reduce emissions with free software updates for newer vehicles along with trade-in payments for cars more than 10 years old.
In a note, analysts at Evercore ISI said they anticipated to see more scrappage schemes across Europe following initiatives through VW along with different carmakers.
“Over the last few days, Europe has experienced a wave of significant… scrapping headlines of which will likely lead to meaningful incremental buying activity along with the replacement of old diesel vehicles,” they said.
“So far, actions are largely related to German [manufacturers]… We assume of which more non-German brands will follow.”
The analysts said further measures were likely to significantly boost car sales, as consumers rushed to cash in their discounts.
They pointed to a 30-40% jump in sales in Germany, from the months following a national scrappage scheme launched in January 2009.