Trying to outrun the competition in the U.S., the Japanese car maker of the Mitsubishi i-MiEV has dropped the price of its 2014 electric car by 20 percent.
Plug-in electric vehicles are known for delivering high road mileage compared to other cars. Most car makers are trying to push these models in an attempt to change the way people use cars and bring a greener and eco friendly environmental. But the relatively high-price of these vehicles has kept most interested buyers at bay.
Several car makers are offering discounts to drive up the sales. Lowering the MSRP is the most reasonable formula to lure more customers. Nissan's Leaf electric car sales more than doubled after the company dropped the price. Companies like Honda and General Motors also cut down prices to intensify the competition.
Mitsubishi is the most recent entrant in this price war for plug-in electric cars. The 2014 i-MiEV subcompact electric car by Mitsubishi has got a 20 percent price drop in the U.S., from $29,125 for the previous model to $22,995 for the latest iteration.
Based on different states, the car qualifies for a $7,500 U.S. tax credit, bringing the price of i-MiEV down to a reasonable $15,495. California residents get the maximum tax credit, hence a Mitsubishi i-MiEV will cost as low as $12,995. This low pricing comfortably places Mitsubishi's EV in one of the cheapest electric cars category.
"At that price, it's not just one of the cheapest electric cars you can buy," Ed Kim, an industry analyst for AutoPacific Inc. in Tustin, California, told Bloomberg in a telephone interview. "It's one of the cheapest cars, period -- particularly in California."
Besides the price-cut, the new i-MiEV model will feature heated front seats, a quick-charge port, a battery warming system and heated side view mirrors. According to the company, more than 30,000 i-MiEVs have been sold around the world.
It is challenging for Mitsubishi to come on the top with its electric car. But the price drop is likely to drive the company's sales better than before.
