Volkswagen is cutting nearly 300 jobs at a German factory as the demand for electric vehicles declines.
Redundancies are taking place at the Zwickau plant of the auto giant, where another 2,000 temporary workers may also lose their jobs.
Volkswagen’s Zwickau plant only produces electric cars, which have fallen in popularity because of high inflation and a faltering government assistance.
German news agency DPA was the first to report the job cuts. The company is preparing for a flood of cheaper Chinese electric cars.
Although electric vehicle sales have increased in recent years, some manufacturers are concerned that customers will be increasingly turned off by their high price.
The price difference between petrol and -powered cars has narrowed.
The drivers were told previously that the high upfront costs of electric cars would be recovered through cheaper charging.
The Russian invasion of Ukraine has led to an increase in electricity costs.
UK carmakers are lobbying to reduce public charges for drivers without access to outlets in their homes.
Volkswagen was asked for comment on the previous decision to cut production of electric cars at one of its largest factories due to a waning in interest that led sales lower than expected.
It also planned to layoff 300 of its 1,500 employees involved in the production of electric models in June.
The company blamed a drop in interest in consumers on the fall of subsidies in Europe and increased inflation.
The company has forecasted a 30pc decline in demand for electric cars.
Manfred Wulff said, “We’re experiencing strong customer resistance in the electric car sector.”
In order to combat concerns about price, ID. In March, 2all unveiled a prototype that costs less than £22,000 and can travel up to 280 miles.
Thomas Schafer, the Volkswagen boss, has promised to introduce a model that costs less than £17 500 .