Nissan will gradually stop selling models with diesel engines in Europe, as a company spokeswoman confirmed to Reuters.

The Japanese carmaker’s move is seen as a further sign of weakening demand for diesel cars, as buyers are worried about tax rises and upcoming bans and restrictions in many countries.

The same report cites a source saying that Nissan is planning on cutting hundreds of jobs at their factory in Sunderland, UK’s biggest automotive factory, due to the decreasing demand for diesel vehicles in European markets.

“Along with other manufacturers and industry bodies we can see the progressive decline of diesel but we do not anticipate its sudden end in the short-term,” the spokeswoman said. “At this point in time and for many customers, modern diesel engines will remain in demand and continue to be available within Nissan’s powertrain offering.”

“In Europe, where our diesel sales are concentrated, our electrification push will allow us to discontinue diesel gradually from passenger cars at the time of each vehicle renewal,” she added.

The automotive industry is facing increasing pressure from regulators with stricter emissions standards and is in the middle of adjusting their businesses, including heavy investments in electric cars.

Last week the European Automobile Manufacturers Association released the first quarter’s sales figures, revealing a sizeable drop in demand for diesel vehicles across the region as customers turned instead to petrol and electrified models.