Customers were sold on a high upfront cost which could be recouped through cheaper charging. But Russia’s attack on Ukraine has pushed up natural gas prices, leading to spiralling electricity cost. Meanwhile petrol prices have eased in recent months, narrowing the advantage.

The UK industry has been lobbying hard for cheaper, more plentiful public charging for users who don’t have access to discounted overnight electricity from a home charger.

At Volkswagen, production for the new ID.7 saloon car will be pushed from July to later in the year

Volkswagen UK said: “The Volkswagen brand, like other car manufacturers, is currently seeing softening demand for electric cars. Reasons for this include: reduced subsidies, higher inflation and recent longer delivery times due to the shortage of parts.

“We are confident that demand for all-electric cars will pick up again as the year progresses. With the extensively revised ID.3 and the new ID.7, we continue to launch attractive new models.”

Volkswagen understands that it must join the price battle for electric cars and in March unveiled a prototype, the ID. 2all, costing less than £22,000 (€25,000) yet with a range of up to 280 miles. 

Volkswagen boss Thomas Schäfer also committed to an even cheaper model costing less than £17,500.