Europe’s anemic car market rebound could be over before it has really begun. That is the fear of executives as they gather for the Paris car show on Thursday, the biggest industry event in the regional calendar.

Renault’s chief executive has warned that the French carmaker could disappear “in its current form” if it is unable to be competitive at home as European car markets face a lasting slump.

France is to pump €329m of state money into the development of electric cars, President Nicolas Sarkozy announced today.