New report indicates BMW has plans to come out with a 2 Series Gran Coupe that will also get the full M treatment.

Spy images have shown BMW is already hard at work preparing the next installment of the 3 Series which is set to grow in size compared to the current model. By making it bigger, BMW will have enough room in the 2 Series lineup to roll out a first ever Gran Coupe. That’s what Autocar has learned from sources close to the Bavarian marque that also said the plan is to roll out the 2 Series GC around 2018.

The model will retain the rear-wheel-drive layout of the 2 Series Coupe and Cabriolet, but the GC will be a tad bigger to enable a more spacious interior. While the 2 Series Coupe’s wheelbase stretches at 2690 mm and the 3 Series Sedan’s measures 2810 mm, the 2 Series Gran Coupe’s wheelbase is expected to be somewhere in the middle. Interestingly, the same report indicates the car will come with a sportier cabin also to be implemented in the next-gen 2 Series Coupe and Cabriolet set to come out around the end of the decade.

2 Series Gran Coupe rendered:

In terms of engines, expect the same array of turbocharged three- and four-cylinder engines from the other two members of the 2 Series families. The cream of the crop will be a 365-hp 3.0-liter, turbo-six for the M2 Gran Coupe scheduled to go on sale in 2019 and will be available with both a six-speed manual and a seven-speed, dual-clutch transmission to please everyone.

BMW’s answer to the Audi RS3 Sedan and Mercedes-AMG CLA 45 will likely offer just about the same level of performance as the M2 Coupe which runs to 62 mph  (100 kph) in 4.3 seconds (4.5s with the manual). However, the M2 Gran Coupe could be a tad slower since it is likely going to be slightly heavier than the M2 Coupe which weighs 1,570 kilograms (3,461 pounds) with the manual and 1,595 kg (3,516 lbs) with the DCT. As for top speed, it will probably be electronically-capped at 155 mph (250 kph).

The rumor mill indicates BMW also wants a plug-in hybrid 2 Series Gran Coupe which is expected to combine a turbocharged, 1.5-liter three-cylinder gasoline engine with an electric motor, a lithium-ion battery, and an eight-speed automatic. Allegedly called 225e Gran Coupe, the frugal derivative is expected to have enough juice for an electric range of 31 miles (50 km).

In terms of design, BMW apparently hasn’t made up its mind whether to use the same four-door recipe from the larger 4 Series and 6 Series Gran Coupe models or go for a five-door liftback look. Since the model is allegedly due to come out in 2018, chances are a concept to preview the production model will be unveiled at a major auto show next year.

Note: BMW Compact Sedan Concept official sketch pictured.