This dates from 1981, and is mostly conventional. If you like AMX30's, Milan, Famas rifles, Vab APC's, this will probably be your thing. What sets it apart is the setting. Instead of just being a film about mechanised units fighting in urban areas, the scenario is a twist. When it was made, the French Government was Socialist, and hence unwilling to make it about the Soviets. So, basicallly the film makers invented an idea where a 'UFO' lands in a French town and turns everyone into Blue Skin mutants with big white eyes (read ping pong balls). Its really odd, kinda like Kellys Heros meets They LIve, or Team yankee vs the Smurfs, whichever you prefer.
Well worth a watch, because you will surely never see the like again...
https://imagesdefense.gouv.fr/fr/le-combat-motorise-dans-les-localites.html