As competition heats up in the electric car market, Chevrolet has just announced it will be cutting the price of the 2014 volt by a substantial $5,000, bringing it down to a starting price of $34,995. It’s perhaps a smart move since the Toyota Prius and Nissan Leaf have been surpassing it in sales.
“We have made great strides in reducing costs as we gain experience with electric vehicles and their components,” said Chevrolet vice president Don Johnson. “The 2014 Volt will offer the same impressive list of features, but for $5,000 less.”
The two biggest competition EVs are both under the $30,000 mark, which has likely contributed to the better sales numbers. The Prius starts at $25,010 and the Leaf starts at $29,650. The price cut will help the Volt show up in the same searches when online shopping for an electric vehicle.
“GM loses money on each Volt it sells while not disclosing a specific figure. The model, which is eligible for a $7,500 U.S. tax credit, was introduced in 2010 and has struggled to meet some sales targets,” said Alec Gutierrez, senior analyst at Kelley Blue Book in an interview with CNN Money. “Volt is GM’s flagship car for its efforts to have about 500,000 vehicles on the road by 2017 with some form of electrification.”
The 2014 Volt can travel 38 miles on a single charge before the gas engine kicks in. When combined with a 37 MPH gasoline engine that provides an additional 342 miles per tank, drivers are able to feel much less “range anxiety” on longer drives.
While the Volt isn’t on top when it comes to EV sales, 92% of its owners said in a Consumer Reports survey that they would buy another. That’s some pretty solid marketing for Chevy and GM, and now that the car’s price is on par with the competition, could do some serious favors for its sales.