OSHAWA, ON - General Motors is slashing the Canadian sticker price of the Chevrolet Volt as electric cars continue to lag behind their gas-guzzling peers.

The 2014 model of the Volt will start at $36,895, plus more than $1,600 in taxes and fees.

That's about $5,000 off the price of the previous model, which cost $42,000 before fees.

Earlier this month, General Motors knocked 13 per cent off the Volt's U.S. sticker price in a bid to keep pace with rivals in the market for plug-in vehicles. That brought the cost of the U.S. Volt to $34,995 including shipping.

Electric cars were once billed as the answer to high gas prices and dependence on foreign oil, but U.S. oil production has risen while pump prices have remained relatively stable over the past few years.

Plus, gas-powered cars have gotten more efficient, making consumers reluctant to give them up.

All of this has made it difficult for the popularity of electric cars to gain ground. Although sales of electric vehicles are rising, they still make up a small piece of the overall industry.

Automakers have been cutting prices in order to move the vehicles off dealer lots. Sales soared when Nissan reduced the price of its Leaf electric car in the U.S., something which one analyst said Chevrolet must have noticed.

The 2014 model of the Volt will make its debut in Canadian showrooms late this summer and will be available in two new colours, the company said.

"The lower price and cost savings offers Canadians the opportunity to own a Volt with an unmatched balance of technology, capability and cost of ownership," said John Roth, vice-president of sales and marketing for Chevrolet Canada in a statement.

"Since its launch in 2010, the Volt has seen an increase in battery range and the addition of creature comforts, such as standard heated seats and a leather-wrapped steering wheel."