It is a fact that this 1.2 is not used in City anywhere else in the world. So it'll be a test for sure. There is a market for 1.3 engines here and thats why Toyota also gave 84hp 1.3 in XLi/GLi. And people used it, but no one called it adequately powered, underpowered was a complaint.
It'll be better than 84hp, but might be underpowered. We are yet to see, we don't have data from other countries in this case of 1.2 on a city.
They are Honda, but they are also Atlas.
This is our fault, should not complain if we cannot cancel the orders for this kind of unprofessional practices. All of this will only get fixed if the customers take action.
Underpowered comes with other disadvantages of not having adequate power to give decent economy. The engine could be pushed hard, lowering the economy. Similar to the 4 speed XLi/GLi automatic. If they want to give the 1.2, at least the manual should be 6 speed and CVT equivalent to 7 speeds. Small engines need lot of gears. But performance should not be a deciding factor if the engine gives good economy. 5th gen. City 1.3 manual is known for economy, and people buy it for economy.