The 2015 Spark EV was priced at $27,645. The Spark EV now starts at $25,995, including an $825 destination charge. The new price is effective now.
The Spark EV is eligible for a federal tax credit of up to $7,500. Some states also offer tax breaks. California and Maryland Spark EV owners may also qualify for a $2,500 California state rebate or a $2,300 Maryland excise tax exemption.
GM said the Spark EV price may be as low as $14,995 after full federal and state tax credits and Chevrolet Bonus Cash.
Chevrolet also rolled out a new lease offer on the Spark EV of $139 per month for 39 months with no money down. Buyers must take delivery by April 30.
The Spark is available at Chevrolet dealerships in California and Oregon. Maryland sales are expected to begin this summer.
The price cut follows lower fuel prices. The AAA Daily Fuel Gauge Report on Wednesday pegged the average price for a gallon of unleaded gasoline at $2.39 versus $3.64 a year ago.
"Gas prices remain stable and cheap," it noted.
But Chevrolet spokeswoman Annalisa Bluhm did not cite fuel prices as a reason for the price reduction.
"We need to make sure we are present when customers cross-shop EVs," she wrote in response to a query.
"Compared to the average new gas-powered vehicle, the Spark EV can save drivers, on average, about $83 per month in fuel costs, according to EPA assessments based on 24 mpg highway for an average vehicle and 12 cents per kWh of electricity cost," said GM in a statement.
Edmunds says: Car shoppers are enjoying price cuts on several electric vehicles as demand lags due to falling fuel prices.