looks more like a speculation - this one. i really doubt if they would pitch the new city against Corolla. Thats the job of Civic, and they have just released an E version starting at 11L for the lower end.
However, looking at a hypothetical scenario where Toyota brings in new Corolla as Altis and sells a price reduced old corolla side by side (nothing new in it - Hyundai,Ford & Skoda are already doing this). Then this might be a good strategy for Honda, bringing in a little bigger city and sell the old city side by side, maybe with a reduced price.
But the possibility of a new slightly bigger city with paddle shift, safety features, VTEC engine and good gadgetry at 10L range is appealing. Heck - i would buy one
