In an effort to reduce its fleet average carbon-dioxide emissions, Land Rover is pondering adding a new smaller model to its lineup. The carmaker’s current smallest model, the Freelander compact SUV, emits 194g/km of CO2, which is well off the proposed targets of 120g/km put forward by the European Council.

To improve its green-rating, Land Rover CEO Geoff Polites has told the Financial Times that developers are working on improving the efficiency of its drivetrains by upgrading engine management and reducing weight. He also mentioned that a smaller and more fuel-efficient model was also possible. When questioned about building such a car, Polites explained that Land Rover “may have to do something, especially if the customers want it.”

He wasn’t so open about the impending sale of the Land Rover and Jaguar labels, however, or how it may affect any future models. Unlike Jaguar, Land Rover’s sales performance is strong, leaping to 194,000 vehicles last year and is expected to reach a new sales record again this year.