Blue Smoke/Engine Burning Oil Vitz/Yaris 2010

[alinawaz]

I have Toyota Vitz 2010 in 2013 which was driven 23K according to ODO meter and now it is around 80K. Few days before I noticed during weekly checkup that car exhausts blue smoke when I raised its RPM to 35000, I also noticed that it reduce Engine Oil to 0.2 - 0.4 Liters during first 1000 KMs.

I Checked it to Toyota Islamabad motors in Pakistan, they said that Engine required overhauling and Piston rings needs to be changed.
Same wording listens from other reliable mechanics.

Both persons also suggest to replace engine.

The current Engine is 1KR-FE 1.0L. The condition is very good. Good mileage, no vibration, no extra sound very smooth driving with or without A/C. I always use HI-Octane (never Mix with super). Use 20w-50 Zic Engine oil. Also check plugs they are also fine.

Kindly suggest how can I save my existing Engine or what do you people think to overhauling it or replace with same one or 1.3L ?