General Motors Co. said Thursday its 2014 Chevrolet Spark EV will start at $27,495 and will cost less than $20,000 after factoring in a $7,500 federal tax credit available for electric vehicles.

The Detroit automaker also will offer its Spark EV 1LT for as low as $199 a month in a 36-month lease, with $999 due at signing. The monthly payment matches what competitor Nissan Motor Co. is offering with its Leaf S model and is slightly less than the starting sticker price on the Leaf, which has had a sales increase in recent months.

GM spokesman Kevin Kelly said the automaker wanted to make sure the Spark EV was competitively priced with all electric vehicles on the market.

"The Chevrolet Spark EV is the most efficient -- and now one of the most affordable -- EVs you can buy," Chris Perry, vice president of Chevrolet marketing, said in a statement. "Combined with outstanding infotainment and great design, the fun-to-drive Spark EV is engineered to impress."

The Spark EV will go on sale beginning in mid-June at Chevy dealerships in California and Oregon; dealers are already taking orders. GM also plans to sell the vehicle in Canada, Europe and South Korea later this year.

GM previously said the Spark EV would cost less than $25,000 after subtracting the $7,500 federal income tax credit. GM said buyers in California also may qualify for other state and local tax credits of up to $2,500, which would cut the price even more.


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Last month, GM said the Spark EV will achieve an Environmental Protection Agency-rated range of 82 miles of combined city and highway driving with a full charge. Its fuel-efficiency rating by the EPA is 119 miles per gallon equivalent and is the highest of any EV sold to retail customers. Spark EV buyers will be able to upgrade the vehicle so it's capable of fast-charging, which will allow drivers to recharge up to 80 percent of vehicle's battery in about 20 minutes.

The 2013 Nissan Leaf starts at $28,800 and has a combined city/highway MPGe rating of 116. The Leaf S's current $199 monthly lease for 36 months requires an initial payment of $1,999.

Nissan has sold 5,476 Leaf vehicles in the U.S. through April, up 160.4 percent from the same four months in 2012. In January, Nissan announced it was cutting the price on the 2013 Leaf by $6,000 over the previous model.