Volkswagen will suspend production of ID.3 and Cupra Born electric cars at its Zwickau and Dresden plants in Germany in the first two weeks of October due to weaker demand, a spokesperson for the carmaker said on Tuesday, Reuters reported.

Due to the current market situation, vehicle production will be reduced during the autumn holidays in Saxony from Oct. 2 to Oct. 13 at Volkswagen's Zwickau plant, the spokesperson said. Germany's dpa news agency first reported the news.

Production of the ID.3 model in Dresden will be suspended from October 2 and resume from October 16 onwards, the newswire stated.

Volkswagen declined to comment on the number of employees affected. The carmaker said earlier this month that it would not extend the fixed-term contracts of 269 employees at its all-electric Zwickau plant, the newswire stated.

Volkswagen is facing rising competition from Tesla and a growing array of Chinese automakers, as well as dampened demand in the European EV market due to high inflation and cuts to subsidies, Reuters noted.