Ford Motor Co., responding to sluggish sales and moves by rivals, is cutting the price on the 2014 Focus EV by $4,000, or 10 percent, to $35,995. The price includes $795 for shipping.
U.S. consumers have been slow to embrace electric vehicles for a host of reasons, including concerns over driving range, lack of convenient charging outlets and prices.
While U.S. sales of alternative-powered vehicles have grown 12 percent this year through June, the volume remains small at 173,464 units.
Nissan Motor Co. slashed prices on the Leaf EV in January and Chevrolet has trimmed prices on the Volt plug-in hybrid by $4,000 to $5,000.
"The 2014 Focus Electric offers customers a fully-contented, all-electric vehicle option," Ford said in a statement. "The new starting MSRP of $35,200 keeps us competitive in the marketplace and is an important part of our commitment to provide customers with a range of electrified vehicles to choose from."
Sales of the Nissan Leaf have increased since its base price was cut by 18 percent to $28,800 for the 2013 model year. The vehicle qualifies for a $7,500 federal tax credit.
Including a $7,500 federal tax credit, some buyers can now purchase a 2014 Focus EV for $28,495, or $25,995 in California, where Focus EVs also qualify for a $2,500 state tax credit and where most Focus EVs are sold.
The Focus EV went on sale in April 2012 with a base price of $39,995, including shipping. Ford sold 177 Focus EVs last month in the United States, and 900 units this year through June.