Toyota Motor Corp. on Monday launched the redesigned Vitz subcompact in Japan equipped with a fuel-efficient gasoline engine.

The new Vitz has a 1.3-liter engine with a fuel-efficiency of up to 25 kpl and features an idling stop system that turns the engine off when the car is stationary.

The company has given the vehicle a sporty and luxurious look while using sound insulation to quiet the driving experience.

"I think the Vitz can compete well against minivehicles" with engines up to 660 cc, thanks to its better fuel-economy, affordable price and comfort," Toyota chief engineer Yoshihiko Kanamori said at a press conference in Tokyo.

Toyota is aiming to sell 8,000 of the Vitz per month, with retail prices ranging from ¥1,155,600 to ¥1,994,073.

The automaker is planning to introduce a total of 14 improved gasoline engines by 2015 globally to achieve at least a 10 percent improvement in fuel economy, compared with existing vehicles.