So you are saying Toyota should offer what you want...fine, it does. The Corolla does come in 1.8L so you can have that. But your point does not stop there. You also want Toyota to not offer what others (than yourself) want. I, for instance, am past the age of racing a car with friends or random strangers between signals. For me, a large, comfortable yet economical car will be a good buy. I would prefer the Corolla in the 1.3L segment and which is exactly why IMC is offering it. I do not feel it is under powered and not many I have met have complained of it being so.
Sorry mate but here's how I have been able to understand your post: How dare does IMC let these bloody poorer, peasant-class people drive the same body shell that should be an exclusive status symbol for me and my rich buddies?
In a country like ours, most people think of this as "first world problems". Really though there exists a 1.8L powered car for that....for those who can afford. And a Honda City for those who wish to compromise on size in the with the smaller engine to retain the power/weight ratio. Worldwide, Toyota has the Belta with a smaller body but I do not think it will work in our market. Oh, btw...a Honda Civic with an option of 1.5L should also be an option because I would actually prefer a reborn shape but one that I wont just buy to park in my garage because I cannot afford to run it. Of course for those who can afford it, let them enjoy the 1.8L civic. Unfortunately for me, Honda decided that since I am not rich enough to afford a 1.8L car, I do not deserve a decent sized car either.
Which basically negates all your previous points. If customers says YES, that's what counts.
In summary, here's what I am saying. No doubt that 1.8L engine is going to be better but not everyone can afford to run that. Besides IMC does offer 1.8L Corolla so I don't get why you're complaining. 1.3L powered Corolla is a decent compromise where its not very powerful but provides better space and comfort. Yes there are customers to whom space won't matter much and they will like their cars to be more powerful but their numbers is lower than those who want a bigger, spacious car. Which, in effect, is the definition of the City and XLI/GLI customers.