The price reflects a $1,175 decrease compared to the 2015 Chevrolet Volt. The 2015 Volt starts at $35,170, including shipping.
GM said in a statement on Sunday that consumers will pay as low as $26,495 for the 2016 Volt after a $7,500 federal tax credit.
"In California, the vehicle's largest market, residents of the state will be able to purchase the all-new Volt for as low as $24,995 after state and federal incentives," GM said.
The Volt has been redesigned inside and out. It will provide an estimated 50 miles of all-electric driving range on a single charge, reflecting a 31-percent improvement over the first-generation Volt, according to GM.
Updates include a sleeker exterior look and a new two-motor drive unit that is up to 12 percent more efficient and 100 pounds lighter than the first-generation version.
The EPA has not yet rated the 2016 Volt.
"The next-generation Volt delivers more technology, the ability to drive further between gas fill-ups and now with even more value to our customers," said Steve Majoros, Chevrolet marketing director, in a statement.
Edmunds says: New technology and a lower price are sure to attract more shoppers to the 2016 Chevrolet Volt.