The electric-vehicle market may be a small niche segment, but you wouldn't know by the price wars going on right now. The latest cuts come from General Motors (NYSE:GM)' slashing $5,000 off the cost of the 2014 Chevy Volt -- a move intended to boost sales.
2013 Chevrolet Volt. Source: General Motors (NYSE:GM).
Drop it like it's hot
Since the beginning of 2013, nearly every automobile manufacturer has dropped the price of its EV vehicles. If you haven't been keeping up -- and honestly, who can? -- here's a quick rundown of the changes:
1). The 2014 Chevy Volt costs $5,000 less than its beginning price in 2013. 2). Nissan Motor Co., Ltd. (ADR) (OTCBB:NSANY) dropped the Leaf price by $6,400 earlier this year. 3). Honda slashed more than $100 per month off the Fit EV lease in May. 4). Ford knocked off $4,000 from Focus EV price last month. 5). Daimler took off 30% off the monthly lease for the Smart Fortwo Electric Drive just days ago. 6). Tesla Motors Inc (NASDAQ:TSLA) hasn't lowered its Model S price, but it introduced a lease-to-own option back in April.
The Volt's price drop comes amid rising Leaf sales. Last month, Nissan sold 1,864 Leafs, compared with 1,788 Volt sales. It's not just Nissan and Chevy that are in a back-and-forth battle, though. The entire EV industry is on the cusp of increasing competition.
The more the merrier
Nissan Leaf. Source: Nissan.
Part of the sales increase has come from the overall spike in electric-vehicle models on the market. This year there are more than a dozen electrified vehicles for sale, and more competitors, such as the BMW i3, are coming soon. As more electric cars enter the market, consumers can expect the pricing wars to continue, but that's not the only thing that will help lower costs.