Firstly it depends what is our preference. If one has a family then city is obvious choice and if one is a student like me then vitz is the best car.
Apart from this, Vitz has its advantages over city:
It's more comfortable ( better balanced suspension and better comfortable seats)
Vitz has more features ( airbags, immobilizer, push start, auto lights, retractable mirrors etc)
It has better fuel economy and smoother drive due to CVT gear box.
It has lower registration cost and life time token, all in all lesser running costs.
Vitz also is a lot roomier, it equals city sometimes I think the back seats of Vitz are more spacious then city.
It is easier to park and roam around town because of its size and amazing turning radius.
All in all vitz should not be considered an inferior car just because it has is a hatchback. It has its own share of advantages, which to me matters a lot.