Volkswagen UK has reduced the price of its fully electric e-Golf by £2,765 to £31,075.
The hatchback, which is eligible for the Government's £3,500 plug-in car grant, has a WLTP-certified range of 144 miles.
Geraldine Ingham, head of marketing at Volkswagen UK, said: "With ultra-low running costs and zero emissions incentives, the e-Golf was already a value-packed offering by virtue of its electric powertrain.
"A sizeable price realignment only makes the e-Golf a more tempting proposition to buyers."
The e-Golf is also available on a 48-hour test drive.
The Volkswagen Group has announced plans to make 22 million electric vehicles within the next 10 years - 7m more than its original ambition.
This is partly becasue it has increased the number of new electric models it plans to launch in that timescale from 50 to 70.
The arrival of the ID3 electric hatchback next year will see Volkswagen's electric vehicle plans come to fruition, built upon a purpose-built electric platform, the Modulare Electric Drive Kik (MEB).
This will underpin a whole range of pure electric vehicles.
ID3 will be available with three battery options, with a 'real world' range starting from around 200 miles rising to 340 miles and a starting price of under 30,000 euros in Germany. No UK pricing has yet been announced.