Mercedes-Benz is reportedly developing a new performance-tuned C-Class model, the C450 AMG Sport.

The sedan is said to slot between the C400 and the C63 AMG, powered by the company’s M276 3.0-liter engine. The twin-turbocharged mill is expected to be tuned for 367-horsepower output, providing an extra 38 ponies over the standard mill in the C400, unnamed Mercedes-Benz sources have told Autocar.

The company may also be attempting to chip away at BMW’s market share, filling a gap that exists between the standard 3-Series offerings and the M3. Unlike the M3 and C63 AMG, the C450 Sport is expected to offer a choice between rear- and all-wheel-drive configurations.

The C450 AMG Sport has reportedly been developed with assistance from Mercedes-Benz’ AMG division, likely representing another step up from the “AMG Sports Package Plus,” however it is not believed to be an official AMG model.