The only spark that General Motors Company (NYSE:GM) needed to trigger a frenzy for its electric cars was a reduction in prices backed by an improved lease deal. The giant automaker is now reaping big from the unprecedented move, seen by car dealers across the country affirming that they have seen cars sales tick, just days after the announcement.
Reduced prices of Chevrolet Spark EV to $25,995 from $27,645 saw a dealer in California sell a record five cars in single day. Just an indication of the strong demand, the car is destined to command going forward as a cheaper alternative in the electric space.
General Motors targets electric
General Motors Company (NYSE:GM) will be looking to gain an advantage in electric space at the back of cheaper models that can offer the highest level of reliability and efficiency, compared to the high-end models offered by Tesla Motors Inc (NASDAQ:TSLA).
General Motors offering a lease deal that starts at $139 a month could not have been put any better according to one dealer. The automaker is moving to make the car available in three other states of Oregon, California and Maryland. The latest offer seeks to utilize the applicable state incentives in California, which should sway more consumers to buy electric cars as they will also end up paying less based on rebates tax exemptions.
Competing on price
General Motors Company (NYSE:GM) is also looking to lower the effective costs by $3,500 to a low of $14,995 as the company moves to ramp its effort in the electric space before other automakers unveil their models and offers.
Potential buyers in California and Maryland could be the biggest winners of the latest deal as they may qualify for a $2,500 and $2,300 rebates tax exemptions respectively. General Motors Company (NYSE:GM) is also enticing consumers in the three states on promise they stand to walk away with $1,000 worth of cash bonus in California, $1200 in Maryland and $3,500 in Oregon.
General Motors Company (NYSE:GM) is advertising the Chevrolet Spark EV as a reliable car in terms of cost saving as it could allow consumers to save an average of $83 a month in fuel costs.