If this is the price of City 1.2 CVT, it is similar to Yaris Ativ 1.3 (27.69, 29.11 on the road price), which has more features if Honda decides to keep the basic variant basic, and Yaris wins on features hands down.
And if 1.5 CVT doesn't have additional features other than the 1.5 engine, it might lost against Yaris 1.3 Ativ as well.
Yaris is going into this competition on an already built market as well as reputation. But it seems Toyota is at least a little concerned because they are advertising quick delivery these days. This city might not be as popular as 5th gen in my opinion.