Speaking to What Car? at the 2012 New York motor show, McGovern said: 'One of the questions [we are asking ourselves] is how small can you go?
'We have got a small Range Rover, could we do a smaller Range Rover? Yes, I think we could.'
He also revealed that building a smaller model might not be restricted to the company's Range Rover brand; telling What Car? that a smaller Land Rover was 'absolutely' possible.
McGovern also told us that he sees downsizing as a valid path forward for the manufacturer, but not at the expense of interior space.
'One of the things I am intrigued by at the moment is that every model we replace doesn't get any bigger,' he said. 'In fact, generally, I would like to see them get smaller on the outside, but get bigger on the inside.
'There are more cars to be designed,' he said. 'There is potential in the market.'