BMW is the latest car maker to have slashed prices in the wake of the government's changes to the Plug-In Car Grant.
The i3 and i3S now come in under the new £35,000 cap and are eligible for the £2,500 plug-in car grant subsidy, with the entry-level i3 120Ah now costing £33,805 and the i3S 120Ah £34,805.
BMW has been ruthless with what it calls a price 'realignment' as it was charging £39,690 for the i3 and £42,300 for the i3S, meaning there's just a £1,000 difference between the two models.
The i3 has a range of 182 to 190 miles while the more powerful i3S gives between 150 and 173 miles from a full charge. BMW's oldest electric car, the i3 has clocked up 200,000 sales worldwide – 22,000 of which have been to UK buyers.
BMW's price cuts follow similar moves by Peugeot, Citroen and Vauxhall to bring their electric models under the new £35,000 threshold.
Last month, the government changed the Plug-in Car Grant and slashed the cap from £50,000 to £35,000 and the subsidy from £3,000 to £2,500.