Taking its cues from the Smart fourtwo and other minicars, Toyota is planning to release its 4-passenger IQ for Japanese and European cities later this year. Slightly larger than the fourtwo, the IQ comes with a 1.0 Liter 68 horsepower three-cylinder engine in front, front-wheel drive, and seating for three adults and one small child behind the driver. With very little overhang, the car turns on a dime and offers more interior space than the Daimler AG two-seater, which gets 31-mpg city and 41-mpg highway.

Longer, wider, and lower than the fourtwo, the Toyota IQ will deliver 68-mpg and promises to be its first U.S. competitor in the minicar segment. Not to be a two-pony show for long, the minicar niche will soon make room for what GM will smuggle into the U.S., the retro-styled Fiat 500 which gets 56-mpg. The Fiat 500 has a long history in which it has proven itself as an able competitor.

More to its credit is its low emissions, 100g/km of CO2, which leaves it alone at the top in the four-seat gasoline-powered segment. At a top speed of 93-mph and a 0-62 of 14.7 seconds, the IQ, while not quick, will get you up to speed in highway traffic safely and with a comfortable sense of security around you. Early next year, you may have the opportunity to test-drive a new IQ in the U.S., possibly with a Scion badge.