A fresh report out of Australia suggests a high-performance Peugeot 508 R is being developed to take on the likes of the Audis S4 and Mercedes-AMG C43, as well as the upcoming BMW M340i.

According to motoring.com.au, a “senior insider” at Peugeot confirmed the 508 R would draw its urge from the brand’s new plug-in hybrid powertrain.

“In the future, we won’t have a powerful engine without electrical assistance,” the insider told the Australian publication, which speculated two powerful electric motors would be used in conjunction with the familiar 1,6-litre turbocharged petrol engine.

The source also suggested the 508 R would employ all-wheel drive, with motoring.com.au predicting a zero to 100 km/h time of “around 4,5 seconds”.

Meanwhile, Peugeot design chief Gilles Vidal virtually confirmed the automaker would eventually offer “sportier versions of the 508”.

“I don’t think it would take much to become a hot sedan. You don’t need to go crazy ,” he added.

Vidal also revealed the high-performance would not wear the GTi badge.

“You couldn’t name this a GTi. It relates to small cars like the 208 and 308. It sounds funny to put a badge like this on a big car,” Vidal said.