Detroit-based General Motors Co. ( GM) is cutting the base price of its plug-in hybrid Chevrolet Volt by 12.5 percent, or 5,000 dollars, in an effort to promote sales of the electric car, U.S. media reported on Tuesday.

According to Detroit News, the price of a 2014 Volt would go down from 39,995 dollars to 34,995 dollars. If a 7,500-dollar tax reimbursement from the U.S. federal government is included, the price could be as low as 27,495 dollars.

The price cut came just weeks after the U.S. auto giant announced a 5,000-dollar kickback for the 2012 Volt and a 4,000- dollar kickback for the 2013 model. GM's first Volt, a 2010 model, cost 41,000 dollars.

"We have made great strides in reducing costs as we gain experience with electric vehicles and their components," Don Johnson, GM's U.S. Vice President for Chevy Sales, was quoted as saying in a statement.

The 2014 Volt will offer consumers the equivalent fuel economy of 98 miles per gallon on electric power and 40 miles per gallon when powered by its gasoline engine. It will arrive in dealers' showroom later this month.

In January, Nissan Motor Co. cut the price of its Leaf EV by more than 6,000 dollars. In July, Ford Motor Co. slashed the price of its 2014 electric Focus by 10 percent.

Sales of electric vehicles in the United States more than doubled to almost 49,000 vehicles in the first seven months of this year, accounting for only 0.54 percent of the overall market. Endi

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