Toyota builds a sub-Yaris

TOYOTA launched a new compact sedan in Japan this week – and has left open the possibility for export to overseas markets.

This is significant considering Toyota Australia is currently investigating models to slot in underneath the Yaris hatch and better compete with low-budget offerings such as Holden’s Korean-built Barina.

Belta, which Toyota claims means "beauty" in Italian, is apparently the smallest sedan the Japanese auto giant has ever built and is available with a 1.0- or 1.3-litre engine.

Both engines have variable valve timing and are paired with a continuously variable transmission. Front-drive and AWD versions are available.

The sedan is claimed to have a class-leading 9.2-metre turning circle, rear legroom equivalent to a larger sedan (one size up) and a 475-litre cargo volume.