Mercedes is set to expand its model range, and this latest news indicates they are not going to be left behind by BMW and Audi's aggressive 'fill-every-segment' strategy

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German auto magazine, auto motor und sport, reported early this week that Mercedes-Benz is considering two different models to expand its customer base - one would be a rival to the Audi TT while the other is set to compete with the Porsche Panamera. It was also mentioned that both models will be developed by the brand's performance division, AMG.

Based on inside source, the magazine also reported that the TT rival will be based on Mercedes's MFA2 front-wheel drive platform; this same platform will make its debut in the next A-Class which is planned for a 2017/2018 launch. And in terms of bodywork, it was said to resemble the AMG GT; a soft-top version, also like the TT, will also be available.

On the Panamera competitor, Mercedes cited that their coupe-styled four-door sedan will be based on the E-Class (a new E-Class will debut next year). This model will specifically be a stand alone design, meaning it will not be a "sporty" E-class.

With Mercedes aiming to beat BMW as the world's top-selling premium automaker by 2020 (currently third behind BMW and Audi), this is a clear indicator that Mercedes-Benz is heating things up by expanding into niche markets.