There are lower variants of every car offered by manufacturers in order to keep the price tag as lowest as possible. Xli and gli were extreme barebone skeletons of grande but they share the same body shell and suspension so they are still corolla afterall. Stripping down all features off any car does not make it some other car.
The major competition for sub compact segment are asian markets where internationally, new generation of city has been taking the lead and winning the segment no doubt. but yaris is still giving city a tough competitive in this category as the demand for subcompact sedans is on the rise.
But things are different in pakistan. We'll talk about city when Atlas will launch new gen. Until then yaris is clear winner for PKDM.