Porsche is to cut its prices by up to 10% from the beginning of next month.

The German car company has benefited from the weak euro, which has boosted the profit it makes on cars sold in the UK for sterling.

It is the second price cut by Porsche. Last August it reduced its prices by up to 5%.

But even with a price cut, the cars will still be out of many people's league - the range starts at �31,450 for the Porsche Boxster.

Prices under pressure

Porsche's move follows the UK Government's decision earlier this month to order car makers to cut their prices.

A report found that new cars were 10% to 12% higher than in other European countries.

Acting on a report by the Competition Commission, Trade and Industry Secretary Stephen Byers ordered manufacturers to offer private purchasers the discounts normally available only to fleet buyers.

Typically, consumer discounts average 7% to 8%, while fleet discounts can be as high as 35%.

Announcing the price cuts on Thursday, Porsche welcomed the report.

It added that it expected the report to have hardly any impact on its "niche" business.

The UK is the third largest Porsche market in the world behind the US and Germany.

Last year, it sold a record 3,707 vehicles in the UK.