Toyota Motor Corp. unveiled the ultra-compact iQ car at an event in this eastern Japan city on Wednesday, Oct. 15th.

The iQ, which the top Japanese automaker claims is the world’s smallest four-seater, will go on sale in Japan on Nov. 20 with the price tag of between 1.4 million to 1.6 million yen.

Toyota aims to sell 2,500 units a month.

Toyota President Katsuaki Watanabe said that the launch of the iQ will help create a new market at a time when domestic auto sales have been slumping.

The iQ, which is 2.98 meters long, 1.68 meters wide and 1.5 meters high, can seat three adults and one child, according to the company.

At normal speeds, the 1,000-c.c. iQ can travel 23 kilometers on a liter of gasoline, making it one of the most fuel-efficient cars of this class.

As part of its safety features, the iQ is equipped with nine airbags, a number on a par with luxury vehicles.

The iQ will be released in Europe in January 2009, Toyota said.