Here's a wild theory: Could Honda also be launching Honda Amaze and calling it City DXIRE 1.2? Is that why they are hell bent on not acknowledging the launch of 6th gen? I mean they sold 5th gen quite proudly for 12 years, ab kis baat ki sharam?
Honda Amaze also uses the same 89hp L12B from older Fit/Jazz and comes with both manual and CVT. Plus Amaze is also in-line with their claim in the QnA notice: "Exceptionally efficient on fuel" as simply putting the L12B from Amaze in GM6 City would give terrible fuel economy, worse than 5th gen 1.3 even.
The other claim that having a 1.2 engine results in "increased cabin space" also doesn't make sense unless its a completely different car altogether.
Remember, at one point Atlas was considering Brio for our market which is the hatch version of Amaze. They could be planning to take on the Saga/Alsvin segment with City DXIRE and Yaris with GM6 City.
(Or maybe mujhay roza lag raha hai and I'm completely wrong)