Rolls-Royce, BMW's UK luxury cars subsidiary, plans to break out of its current role as a producer of $350,000-plus limousines into other sectors, which could take it into direct confrontation with Bentley, its former sister company now owned by BMW rival Volkswagen.

The first decisions on which segments to enter are expected to be made "within a year", Ian Robertson, the company's chairman and chief executive, told the FT yesterday.