Since Corolla sells the most in 1.3l category, discontinuing it would be a bad idea.
I would Recommend:
1.3l - Corolla GLi
1.5l - Belta or
1.6l - ......
1.8l - Premio
2.5l - Crown instead ov 2.4l Camry
I have given the above names in accordance with the popularity these vehicles enjoy in our country. Else, there are plenty ov other variants available internationally too. And yes, a 1.0 hatchback Vitz or any other vehicle with a smaller engine would most likely do wonders too.