Toyota Europe has extended its premium priced iQ city car range with a new version with 1.33-litre petrol engine (already used in the in the Auris, Yaris and Urban Cruiser), start-stop and the option of a CVT automatic transmission.

With manual transmission, the ‘iQ3’ was rated at 58.9mpg in EC combined cycle testing and emits 113g/km of CO2 placing it in the second lowest road tax band here in the UK. The ‘Multidrive’ version emits 120g/km.

The six-speed manual gearbox version has a stop and start system which automatically cuts the engine when the car comes to a stop and the gear shift is moved to neutral; when a gear is selected, the engine restarts in 0.4 seconds thanks to the use of a permanently engaged gear mechanism. In urban driving, the system can reduce fuel consumption  by up to 15%, Toyota said.

iQ3 models share trim and equipment specifications with the well-equipped iQ2 one-litre models and add chrome trimmed door mirrors and larger, 16-inch dual five-spoke alloy wheels.

Standard equipment includes automatic headlights and wipers, climate control, electric folding and heated door mirrors, smart entry and start, auto-dimming rear view mirror, six-speaker sound system, front fog lights and a leather trimmed steering wheel. Nine airbags are fitted, including the world’s first rear window airbag, and safety gear includes vehicle stability control with traction control.

With that level of specification, the tiny iQ3 is not an entry-level car. On-the-road UK prices are GBP11,495 (manual) and GBP12,495 with Multidrive CVT.

Leather upholstery (GBP690) and satellite navigation system with Bluetooth and iPod integration (GBP930) are optional.