Porsche is planning a smaller version of its Panamera limousine, which would mark the brand’s entry into the mainstream market. The junior Panamera is part of Porsche’s ambitious plans to sell 200,000 vehicles by 2018.

The downsized road car is set to be a five-door fastback like its bigger brother and will compete head-on in Germany’s lucrative premium segment against the BMW 5-Series and Mercedes E-Class.

Porsche boss Matthias Mueller told Focus news magazine that the new car, which has been on the drawing board for several years, would still be priced above 50,000 euros (66,400 dollars) on the domestic market. Mueller described the figure as “the magic limit” below which the luxury maker would not pitch a production car so as not to endanger its upmarket image.

Another new, Ferrari-beating Porsche would slot in above the iconic rear-engined 911. Mueller said production of the car, codenamed Porsche 960, was highly likely. Another project in the pipeline is a Targa drophead.

This is Porsche terminology for a semi-convertible with a removable roof section. “We could see ourselves reviving the Targa 964 just like we did 20 years ago,” said Mueller.

Porsche currently produces the 911, the Cayenne, the Panamera and the Boxster/Cayman. A small SUV, the Macan, is also poised for production.

Porsche is owned by Volkswagen and posted record production for 2012. In November it announced it had sold 128,978 units or 8.5 per cent more than in the whole of 2011.