The Porsche Cayenne will be the smallest SUV built by the manufacturer, as it fears a smaller car would steal sales from the bigger car's sales.
Company insiders have told Autocar that they believe that there is strong evidence of the Audi Q5 taking sales from the Audi Q7, and are not willing to follow a similar route.
The Porsche Cayenne accounts for up to 50 per cent of the firm’s profits, and a new model is due to go on sale on 29 May.
The range will feature a diesel and, for the first time, a hybrid with a V6 petrol engine.
The two petrol models, the S and the Turbo, both use a 4.8-litre V8, with 395bhp and 493bhp respectively. Porsche claims 27.6mpg for the Turbo.
Prices for the new car start at £41,404 for the entry-level model. The diesel costs £44,178, while the S costs from £53,693.
The new S Hybrid is the second most expensive Cayenne, at £57,610, while the range-topping Turbo weighs in at £81,589.