Volkswagen Group saw sales for its electric vehicles plummet by nearly a third as it fails to attract enough customers to make the switch.
In the US, sales for EVs were 16 per cent lower than this time last year, while in Europe, sales fell by 23 per cent across the quarter.
The lapsing profits reflect the lack of appeal electric vehicles are having around the globe as more carmakers struggle to convince customers to buy.
Over the three-month period, the carmaker managed to sell 74,400 EVs across Europe compared with 98,300 in the same period the previous year.
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sales across Europe fell by a third
PAHildegard Wortmann, member of the group's extended executive committee for sales, said: "In a market environment that remains challenging, the Volkswagen Group achieved a solid delivery performance in the first quarter.
"Our diversified product portfolio gives us the necessary flexibility to compensate for fluctuations in demand in certain segments - as is currently the case with all-electric vehicles - in others.
"The higher order intake for our all-electric models in Europe makes us confident that we will grow in this segment both in our home region and worldwide over the year as a whole.
"More than 30 model launches across all drive types this year will give us tailwind in the coming months."
Volkswagen is the latest carmaker to take a hit to its electric vehicle sales, following behind Mercedes Benz which also saw profits drop.
The drive for more electric cars comes as the UK Government accelerates its plans to have 80 per cent of new cars and 70 per cent of new vans sold to be zero emission by 2030, increasing to 100 per cent by 2035.
Before then, the Government hopes to have at least 20 per cent of vehicles electric by the end of this year to keep the UK on track.
The competition for more electric vehicles faced an uphill battle from China as the country already dominates the sector.
According to reports, one in five electric cars in Europe were made in China with the country already monopolising nearly 80 per cent of the industry.
Last week, Chinese car company BYD made headlines over plans to launch the cheapest electric vehicle in the UK market to date.
With a reported starting price of £8,000, as sold in China, the BYD Seagull would make it the cheapest option available to drivers across the UK.
As drivers are already sceptical about making the switch, having a price that undercuts the competition completely, could shake things up.
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There are now 620,000 plug-in hybridsPASince 2009, China has used a variety of subsidies to scale up BEV production, boost market penetration and build a charging station infrastructure to help achieve its global leadership.