BMW has become the latest carmaker to announce a price reduction in order to keep one of its cars within range of the UK Government’s plug-in car grant.

It has dropped the price of its standard i3 electric car, featuring a 170hp motor, from £39,690 to £33,805, and of the i3s model, with a 184hp motor, from £42,220 to £34,805.

This means the models remain eligible for the grant, which following a government announcement earlier this month now only applies to cars costing less than £35,000. 

The value of the grant was also reduced at that time to £2,500, meaning that with it included the prices for the i3 and i3s are now £31,305 and £32,305 respectively.

BMW follows manufacturers including Citroën, Vauxhall and Peugeot in announcing a price cut, while Kia launched a new, cheaper derivative of the long-range version of its E-Niro.