TOYOTA says it's out to prove a tiny car can be top-notch with its new iQ "ultra-compact" that's just a bit smaller than 3 meters but offers quality safety features, mileage and handling.

And it's asking a bit more in pricing for the iQ, which seats three adults and one child or luggage in the fourth seat.

It goes on sale in Japan on November 20 starting at 1.4 million yen (US$14,000), targeting selling 2,500 iQ cars a month.

It is planned for Europe early next year. The Toyota Motor Corp did not immediately give a United States sales date.

It comes with nine air bags for the standard model, including a curtain shield air bag that deploys from the roof lining about the rear window to protect back-seat passengers' heads in a rear-end collision.

It delivers 23 kilometers a liter under Japanese standards, Toyota said.

"When it comes to cars, traditionally big has meant good. The iQ dispels that notion," Hiroki Nakajima, iQ's engineer, said in a prepared script for the unveiling yesterday in a Tokyo suburb.

He said he did not compromise on quality to achieve a spacious interior and stuck with quality raw materials.

Toyota said it made design innovations for a more efficient placement of the engine, fuel tank and other parts, as well as made backs for the seats thinner while not compromising on comfort for more leg room.

Toyota said in a statement the iQ's "i" stands for "individuality," "innovation" and "intelligence," and "Q" for "quality," and hinting at "cubic" and "cue." "That's why the iQ is all about being premium," Nakajima said.