Sir in 2005 Civic s production was hiked to nearly 60% of Corolla but now everything is changed, Civic is not selling even 10% of Corolla.
Civic is definitely a better car, but the price is almost 70% up, in 2005 it was 900K for base EXI and the 2005 Civic was better then the current one, Honda has to change the pricing/options level and make sure the availability of cheap parts to compete with Corolla (sadly, they are going the opposite way).
City can never do the job for them.
Most of Pakistani people buying executive ( for Pakistan) sedans have a limit of around 1000-1300K for buying a new car and base Civic exceeds that by more then 300K which is proving unforgiveable and damging its sales.
People can forgo ABS, A/T, power windows, alloys, stereo, color choices, engine power/refinement, independent suspensions or everything else but they want to be seen in a full size C segment car and XLI can get the job done better then any other.
Toyota Indus is currently making even more Corollas then Mehran, Cultus and Alto combined.