1300cc is a bit small for a car. You'd need to have more displacement or forced induction, either of which would increase vibration (forced induction requires heavier internals).
A V4's advantage over other 4-cylinder configurations is that it's more compact, but these days inline-4s and flat-4s are compact enough not to be a problem (while also being smoother even if they have bigger displacement and heavier internals).
Since inline-4s and flat-4s are inherently smoother, they permit longer strokes for more low-end torque.
If you need a compact engine with a high power-to-weight ratio and you don't care about emissions, fuel economy, or having to rev it high, a rotary engine is a better choice than a V4: lighter, simpler, smoother, more compact, more responsive, and able to rev higher.