The Japanese automaker says that the move is part of its efforts to increase sales of the electric car, which has been struggling in the market.
The I Miev was first introduced in 2010 and was priced at around $35,000. But sales have been disappointing, with just over 3,000 units sold last year.
In an effort to boost sales, Mitsubishi has now dropped the price of the I Miev to $28,000.
The price cut is also designed to make the I Miev more competitive against other electric cars, such as the Nissan Leaf and the Chevrolet Volt.
Mitsubishi is hoping that the lower price will help it to sell 5,000 I Mievs this year.