Volkswagen shares dipped on Monday after another profit warning issued by the embattled German carmaker was followed by its departure from Europe's blue-chip index.

Shares were 0.5% lower in mid-morning deals, extending Friday's 8.3% decline after Volkswagen downgraded its expected operating return on sales to 1%, from a previous forecast of 4% to 5.5%. It blamed an impairment related to its large holding in Porsche , a "further deterioration" in the market environment — particularly in China — and restructuring expenses.

"An accelerated shift in demand in favor of battery-electric vehicles ... will lead to developments falling short of original expectations, especially for the Audi and Volkswagen Passenger Cars brands," the company added.

Separately, Volkswagen was ejected from the Euro Stoxx 50 on Monday, a move announced earlier this month as part of the index's annual update to reflect the euro area's biggest companies across major sectors.

Volkswagen's share price has fallen 27.5% this year and is currently near its lowest level since 2010.