Mazda Motor Corp.'s redesigned Demio/Mazda2 will debut in Japan later this month, add a diesel option in October and introduce an all-wheel-drive variant in December.

The car will launch at a starting price of 1.35 million yen ($12,600). Mazda predicts sales of 5,000 units per month in Japan.

The new model will offer a new 1.3-liter 4-cylinder gasoline engine with 5%-10% more torque than the powerplant it replaces. The optional 1.5-liter clean diesel a segment first in Japan will deliver 184 lb-ft of torque. Both engines will be available with a choice among three redesigned gearboxes: a 6-speed automatic and 5- and 6-speed manuals.

The Demio is the fourth in Mazda's lineup to fully adopt the company's Kodo design language and Skyactiv efficiency technology. The car's body-in-white is about 7% lighter and provides 22% more torsional rigidity than the previous model.

Standard or optional equipment includes four-unit LED headlamps, i-ELOOP regenerative braking, automatic low-speed braking, blind spot warning and cross-traffic alert devices.