Tokyo - The Toyota iQ is heading for European showrooms in January 2009, challenging the Smart Fortwo and Fiat 500 in the microcar segment with an entry level price of 12,700 euros (16,338 dollars).

Measuring just under three metres in length, the iQ is 29 cm longer than the Smart but seats four people.

Average fuel consumption is listed at 4.3 litres per 100 kilometres with carbon dioxide emissions under 100 grams per kilometre. The three-cylinder engine has an output of 68 hp with a top speed of 150 km/h.

Standard equipment includes air conditioning, light alloy wheels, an audio system, electric windows, Anti-lock brakes (ABS), Electronic Stability Control (ESP) and nine airbags.

Some of the optional extras include a dashboard satnav and Bluetooth and leather seats. (dpa)