There's a big gap between BMW's namesake offerings and its Rolls-Royce models, which go for upwards of $300,000. But that soon may change, as the automaker plans on bringing out a super luxury car to compete with Maybach.

According to Automotive News, BMW eyes the large margins that Mercedes enjoys on its Maybach line. BMW's new offering would slot above the 7 Series flagship sedan.

"The luxury class will remain a high-margin segment, so we intend to enhance our presence by adding another new model," BMW CEO Harald Krueger told reporters last week. The most expensive 7 Series right now goes for around $126,000 in Germany, but a new offering would see a big price jump.

"Just like certain competitors, we will see that we occupy with credible offers the price bracket of 150,000 euros ($170,000) and beyond," said BMW development chief Klaus Froehlich. According to Froehlich, the new model doesn't have to rely on a stretched wheelbase to boost sales.

See all 14 photos

Instead, BMW's new offering would strive to retain the agile handling that the automaker has made its hallmark. The big question is whether customers in this segment will put a high priority on driving dynamics versus, say, comfort and convenience.

For now, Mercedes remains the leader in large luxury flagship sedans. A total of 21,934 S-Class models were sold in the U.S. last year, versus just 9,292 7 Series models.

Mercedes suffered quite a bit of backlash when it relaunched the Maybach brand under a new strategy. The focus of Maybach shifted from competing with Bentley and Rolls-Royce to offering top-of-the-line versions of Mercedes brand vehicles. Maybe BMW is looking in the direction of the Mercedes-Maybach S600, which starts at just over $190,000. A potential challenger could be the rumored 9 Series flagship sedan.