BMW is exploring a plan to build what a senior company official calls "a breakthrough green supercar" by the end of 2012.

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The new car would rival the Audi R8 and forthcoming Mercedes SLC, and has been described by company insiders as ‘a puristic two-seater that draws on all the very latest BMW technology and lightweight build processes.’

The car is also intended to showcase BMW’s Efficient Dynamics programme, combining fuel-saving technology such as direct injection, brake energy regeneration and stop-start.

A source privy to early design proposals says that the new BMW supercar will be the equivalent of a modern-day M1, a car that the company recently made reference to with the retro M1 Homage concept.

The as-yet-unnamed new model will be capable of combining supercar performance and driving dynamics with fuel consumption and CO2 emissions "on a par with or better than a mid-range 5-series".

The car will be mid-engined, with power most likely to come from a retuned version of the company’s twin-turbocharged, 3.0-litre straight six petrol engine.

BMW is also considering introducing it with a kinetic energy recovery system similar to the one that the company’s F1 team will be using next year.

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