If by performance you mean acceleration and speed then Honda City 2010 and above has no match...
Fuel consumption is awesome, I myself have achieved 16 km/l in city driving very carefully and occasional outbursts...
1.0 Vitz is full of LAG! I own one and its no match for the Honda City...
Go for the City, but I doubt you ll find a good one in under 12 lakh budget...
Note: You could also opt for 1.3 4 speed auto Vitz (not the CVT one)... Nice machine...
Cheers...