Porsche said on Wednesday it would offer a cheaper version of its Cayenne luxury sports utility vehicle with a V6 engine later this year, Dow Jones reported.

The V6 version is priced from €47,592, more than €13,000 cheaper than the Cayenne S V8 version. The top line Cayenne Turbo is priced at €99,876 - more than double the new six-cylinder version, the report said, adding that the new model will hit European showrooms at the end of November and will go to the United States in the first half of 2004.

The Cayenne's V6 motor is a modified version of an engine built by Volkswagen whose Touareg SUV already shares its platform with the Cayenne, Dow Jones said, noting that the Touareg V6 starts at €39,950. Dow Jones said the Cayenne is a key product for the Stuttgart-based car maker, which traditionally makes high-performance sports cars but sales of its core 911 and Boxster models are declining with age.

The report said the Cayenne, which was launched at the end of 2002, has more than made up the sales gap but many investors are concerned about the model's staying power in the increasingly competitive SUV segment.

There have also been separate reports that US dealer inventory is swelling and that discounts, especially on lower-specification models, are easy to negotiate.

Dow Jones said Porsche rival BMW is set to launch its second SUV model [the X3] while Mercedes is reportedly developing three new SUV models.