The company luxury segment is a fairly hot one, and Mercedes-Benz is already working on it next-generation compacts. A report from UK publication AutoCar suggests that the German automaker could push the hot-rod AMG version to 400 horsepower.

Right now the Mercedes-AMG compact lineup all generates 375 horsepower from a turbocharged 2.0-liter four-cylinder. The report suggests the A45, CLA45 and GLA45 will all retain the same engine in the next generation as well. However, the 2.0-turbo is said to get a new fuel injection system, new turbocharger and other changes to push the power figure beyond 400 horsepower. That power is expected to flow through a 9-speed dual-clutch automatic transmission.

This news is not entirely surprising. Competition between Mercedes and Audi in the hot luxury A-segment is heating up as Audi prepares to launch its new RS3. Rumors suggest the RS3 will push out at least 400 horsepower as well.

Aside from the increase in power, the next generation models are expected to be built on a larger yet lighter platform. Naturally, more driver assistance technologies are also expected when the first new A-Class arrives in 2018.

After the new A-Class, the new CLA and GLA is expected to launch later.