Volkswagen has reduced the price of its electric Golf, dubbed the e-Golf, to just over £31,000 - or less than £28,000 when the government’s Plug-In Car Grant is applied.

The German company has cut the price of the battery-powered family hatchback to £31,075, which falls to £27,575 once the £3,500 grant has kicked in. That’s down on just a few months ago, when the car had an RRP of £30,340 once the £3,500 grant was in place.

In effect, that’s a £2,765 reduction in on-the-road price, which the company hopes will make the car “an even more value-friendly offering”. However, it’s much the same price seen in 2017, when the basic price of £32,190 equated to £27,690 once the old £4,500 grant had been deducted.

2017 Volkswagen e-Golf

Although it was first released in 2014, the e-Golf was refreshed in 2017 and now offers a zero-emission range of 144 miles, according to the new and more stringent WLTP emissions and economy test. Despite being tuned for efficiency, the motor serves up 134 bhp and 393 lb-ft of torque - more than a 1.6-litre diesel Golf.

That power means the sprint from 0-62 mph takes a respectable, if not especially exciting, 9.6 seconds, while the top speed is 93 mph. In comparison, a mid-range 1.6-litre diesel Golf will take 10.4 seconds to hit 62 mph, but the top speed will be somewhat higher, at 123 mph.

2017 Volkswagen e-Golf

The diesel-powered car will be cheaper to buy, too, with prices starting at slightly more than £25,000 for a well-equipped ‘GT’ model. However, VW says the e-Golf is cheaper to run than its internal combustion-powered stablemates, with total estimated running costs of 4p per mile, compared with 14p for the equivalent petrol model.

You get plenty of kit thrown in, too, with satellite navigation, climate control and an eight-inch touchscreen infotainment system all thrown in. You also get parking sensors at the front and rear, as well as adaptive cruise control that maintains a safe distance to the vehicle in front.

2017 Volkswagen e-Golf

Geraldine Ingham, the head of marketing at Volkswagen UK, said the price cut would help to make the e-Golf more appealing than ever.

“With ultra-low running costs and zero-emissions incentives, the e-Golf was already a value-packed offering by virtue of its electric powertrain,” she said. “A sizable price realignment only makes the e-Golf a more tempting proposition to buyers; after all, it’s a Golf – one of the UK’s most popular cars – but with all the added benefits and bonuses associated with electric propulsion.”

Gallery: 2017 Volkswagen e-Golf