As per universal policy minimum displacement capacity for sedan shaped cars will be 1500cc. Accordingly Both Indus and Honda are phasing out XLis, GLIs and City. Perhaps one of the main indicators is slowing down of booking/delivery process of both variants. City 1300cc delivery time is 8 to 10 months.
Indus will introduce some hatch back type in 1300cc - just like Vitz while some Altis type 1500cc will be introduced. This will be implemented in next 18 months to get people attuned to new setup.
Honda will discontinue 1.3L city and will continue with Aspire 1.5L.