Is Subaru bringing back the SVX badge? A report says so, and potential rivals include the beefy Vauxhall VXR8. A price of below £40,000 has been bandied about.

Auto Express says it has information that Subaru is working on a spiritual successor to the SVX. The SVX was designed by Guigaro while at ItalDesign and went into production in 1991. Power came from a 3.3-litre flat 6 engine producing 172kW (234hp) and 309Nm of torque. At the time the BMW M3 (E36) was one of its primary targets.

About two weeks ago Subaru unveiled the Hybrid Tourer Concept (pictured), a two-door four-seat gullwinged car powered by two electric motors, a lithium-ion battery and a 2.0-litre turbo engine. It's also going to be shown in Tokyo and is said to be the basis for the SVX.

Insiders said new targets will include the brawny Vauxhall VXR8 but other cars like the new Opel Insignia OPC cannot be discounted. Instead of brawn the company will stick to what it knows best; compact boxer engines beefed up by turbochargers and intercoolers. A 2.5-litre turbo unit could be the source of power but a hybrid is also a possibility.

Set to sell alongside the FT-86-based coupe, the new-generation SVX would be priced at just below £40,000.