Jaguar's M3 rival is beginning to take shape.

Jaguar is preparing to unleash a hot-rodded XE aimed right at the BMW M3, according to a new report.The model is being developed by the automaker's Special Vehicle Operations (SVO) division, and it will likely be called XE SVR. It will receive a supercharged 5.0-liter V8 engine tuned to produce about 500 horsepower.

In comparison, the stock M3 boasts 425 horses, while the Mercedes-AMG C63 offers 469 in its most basic state of tune. The more expensive C63 S gets 503 horsepower, which is on par with Alfa Romeo's Giulia Quadrifoglio.

An eight-speed automatic transmission will transfer the eight-cylinder's torque to all four wheels. The all-wheel drive system will add a bit of weight, but British magazine Auto Express speculates the XE SVR will nonetheless be capable of hitting 60 mph from a standstill in less than four seconds.

Of course, the extra power will be complemented by a more muscular look. Expect a deep front bumper with large air dams, flared wheel arches, a wing on the trunk lid, and a sizable air diffuser integrated into the rear bumper. Inside, the front passengers will be treated to sport seats.

Auto Express claims the SVR-tuned model will arrive halfway through the XE's life cycle, meaning it's still a couple of years away from hitting showrooms. Pricing will start in the vicinity of £65,000, a sum that converts to roughly $80,000 as of writing.

Jaguar hasn't commented on the report. A 380-horsepower model is joining the XE lineup for the 2018 model year, so it looks like the company is open to injecting more power into its entry-level model.