SUBARU has slashed £2,500 off the cost of its BRZ two-seater sports car.

The Japanese manufacturer says the price cut has been made possible by more favourable exchange rates.

It means entry to the BRZ range is from £23,995 on the road for the SE Lux model with manual transmission and £25,495 for automatic versions.

Powered by a 2.0-litre Boxer petrol engine and boasting a low centre of gravity and rear-wheel drive, the BRZ has been reduced in price to ensure differentiation from the new WRX STI saloon, Subaru's flagship performance model.

The WRX STI arrives in showrooms during May, priced from £28,995 - £4,000 less than the previous model.

The BRZ SE Lux, meanwhile, is equipped as standard with Alcantara and leather trimmed seats and Torsen rear-axle differential which allows the keen driver to better exploit the  car's handling.

Automatic models feature steering wheel-mounted gear shift paddles.

Subaru UK chief Paul Tunnicliffe said: "A more favourable exchange rate between the pound and yen has allowed us to reduce the price of a number of models in recent years, and our performance range - the BRZ and WRX STI - are the latest to benefit."

In the last twelve months Subaru has also reduced the price of the All-Wheel Drive XV compact crossover range, while the new Forester has seen its price unchanged over previous versions.