Porsche and Budget are two words that can hardly be put together but the recession hit economy has led the luxury car makers to re-evaluate its product line. Porsche is now considering launching a budget model of its luxury cars which is smaller than Porsche Cayenne. It will be a 4x4 model pitted against Audi Q3 and new BMW X1.

The new Porsche model will be closer to Volkswagen’s Bluesport model powered by 2.0L diesel engine. Wolfgang Duerheimer Head of development told a German magazine that Porsche has placed the project" on ‘top priority’. It intends to create a model significantly cheaper than the Boxster.

Currently the cheapest Porsche available is Boxster priced at US$67,778 or Rs. 31.88 lakh. Porsche has joined hands with Volkswagen earlier in August this year. This merger will enable both the companies to reduce costs and create the car under consideration. Porsche has been experiencing slump in sales since past few months but now believes that the worst is over and the future is more optimistic. Porsche is yet to make any official confirmation and the overall concept is still purely in the realm of speculation. However, it does make sense to produce a car that meets tight fuel economy requirements.