General Motors Company (NYSE:GM) is giving consumers interested in driving an electric car an opportunity to purchase its 2014 Chevrolet Volt by lowering its price to $34,995 including shipping. The price is 12.5% cheaper than the same car model last year.

General Motors

In addition, consumers will also receive a federal tax credit of as much as $7,500, which means the price of the 2014 Chevrolet Volt will be as low as $27,495 depending on an individual’s tax situation.

General Motors reduced the price of its electric car

General Motors Company (NYSE:GM) reduced the price of its electric car after Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201) lowered its price for its all-electric car, the Leaf. Ford Motor Company (NYSE:F) also reduced the price for its Focus Electric.

Compared with the Leaf and Focus Electric, the Chevrolet Volt has a backup gas engine, which might be more attractive to consumers who want to avoid the problem of finding a recharging station in places where they want to drive their car.

Don Johnson, vice president of Chevrolet sales and service in the United States said, “The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership. The 2014 Volt will offer the same impressive list of features, but for $5,000 less.”

In addition, Johnson explained that General Motors Company (NYSE:GM) gained experience with electric vehicles and its components, which resulted to a price reduction. He added,  “In fact, the Volt has seen an increase in battery range and the addition of creature comforts, such as a leather-wrapped steering wheel and MyLink, since its launch in 2010.”

General Motors Company (NYSE:GM) stressed that owners of a Chevrolet Volt who charge their vehicles regularly can drive 900 miles between fill-ups and visit  the gas station once per month.

According to the car manufactures, the 2014 Chevrolet Volt offers a fuel economy of 98 MPG (electric) and 35 MPG (city) and 40 MPG (highway) on gasoline without changing their daily driving habits. General Motors Company (NYSE:GM) estimates that a consumer’s annual fuel cost savings for driving the Chevrolet Volt will be around $900.

General Motors Company (NYSE:GM) boasted that Chevrolet Volt’s EPA estimated gas-free driving was 38 miles depending on terrain, driving techniques, and temperatures. Volt’s range-extending engine is up to 380 total miles of total driving range.

According to the car manufacturer, the 2014 Chevrolet Volt will be available in Ashen Gray Metallic and Brownstowne Metallic colors at dealer showrooms this summer.

Last month, General Motors Company (NYSE:GM) recalled 194,000 SUVs in the United States and 38,000 units in Canada, Mexico, and other countries. The company said those vehicles were at risk for fire due to a potential electronic module short circuit.