Actually, it does compare with Gli, not city. City is a smaller car with fewer gadgets, lesser space, poor suspension however good fuel economy. In Ciaz, you're getting City's fuel economy with a GLI's suspension and drive comfort.
In India, Honda city was way ahead in sales than poor corolla. But there comes CIAZ and it out sales city 6 months in a row. Keep in mind that since there is no Civic in India, City is Honda's crown jewel and ciaz mopped the floor with it.
Ciaz SHOULD take the lead over corolla and Honda city as it has best aspects of both.