Corolla is the cash cow for Indus whereas City had bad been the cash cow for Atlas … (which is why they kept dragging the 5th gen for 13-14 years). Now that Honda being the principal of Atlas also needs to earn something from Pakistan, it is just an adjustment between the oligopoly to enable all of them to earn by capturing dedicated segments and not competing.
Other factors being that Yaris does not have much visual appeal according to Pakistani customers’ tastes, City being similar to previous model and having many cheap spares, City having more features (rear A/c vents etc.) and smaller, less consuming engine are some of the technical factors that make it more plausible.
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