The iQ measures less than three metres long, but can seat three adults and one child. The steering wheel has a flat bottom to give the driver greater legroom and audio controls are positioned on the wheel to save space on the centre console.
UK customers will be offered with a choice of two petrol engines and one diesel when the iQ goes on sale next year. Toyota is expecting emissions figures to start at around 100g/km.
Production will commence during late 2008, with 100,000 units expected worldwide in the first full year.