Bro your guess may be correct for City price, but I don't think so city is anywhere near competition for 1.6 Altis. Here 1.6 Altis sale and even ON is more than Grande. It's a hotcake from Toyota, whereas City is doing just OK in sales.
City will be competing with Yaris only or similar segmant, and if just comparing price gap between Yaris and City, as per my personal opinion, city price is justfied. But as a whole, these days No car price seems justified.
I have personally kept 2018 Altis 1.6 and new City 1.5 aspire CVT both. Honestly Corolla is level up even with lesser features.