The price of the Ford Focus EV car has been cut US$4000 ($4400) – 10 per cent of its former price – in response to sluggish sales.
The price reduction follows Nissan’s move to cut the cost of its Leaf EV in January by up to 18 per cent, as well as Chevrolet’s price-cut of it plug-in hybrid, sold here in Australia as the Holden Volt.
Sales of electric vehicles in the US are subsidised by federal and state governments. With the US$7500 federal tax credit, the Focus EV’s base price is now US$28,495 ($31,100), or $25,995 ($28,400) in California, where buyers also receive a US$2500 state tax credit.
California is the largest US market for alternative-fuel vehicles due to its superior infrastructure compared with other states. It was also the only market to receive the limited run of Honda’s hydrogen-powered, zero-emission FCX Clarity fuel-cell vehicle. In January, the Toyota Prius became the best-selling car in the state.