Nissan will "gradually discontinue" selling diesel cars in Europe, in a further sign of weakening demand for those cars as customers worry about tax rises and looming bans and restrictions related to diesel in many countries.

Reuters has reported a source claiming Nissan would cut hundreds of jobs at its Sunderland plant, Britain’s biggest automotive factory, due to falling demand for diesel models in Europe.

Now a Nissan spokeswoman has told Reuters: “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. 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.

Nissan was the first carmaker to retail a pure electric car, the Leaf, in relatively significant numbers.