The nameplate was revived in 1996 for use on a series of subcompact four-door sedans aimed primarily at developing markets, first mainly sold in Asia but later also in Latin America and Australia.

The seventh-generation model launched in 2019 features a significant size growth, offering an exterior dimension on par with the ninth-generation Civic sedan.

A Pininfarina designed drop-top Cabriolet utilized the wider fenders and bigger bumpers of the Turbo II "Bulldog", but was only available with the naturally aspirated 67 PS (49 kW) engine.

The engine configuration introduced the Honda D series, in the form of the type D12A, a 1.2 L SOHC straight-four 16-valve unit only available with a single carburetor, and basic level of equipment.

The third-generation City (first-generation as a sedan),[4] codenamed SX8 but with chassis codes 3A2 (1.3) and 3A3 (1.5), was based on the EF Civic platform to cut costs.

[citation needed] The City was built in additional markets including: India, Indonesia, Malaysia, Pakistan, the Philippines and Taiwan.

The fourth-generation City (second-generation as a sedan)[4] made its world debut at the Thailand International Motor Expo in Bangkok in November 2002.

[8] The City was initially launched with a twin-spark, lean burn ‘i-DSI’ engine producing 88PS that was primarily designed to provide outstanding fuel economy.

The City in India, Indonesia, Malaysia, Pakistan, the Philippines, Singapore and Thailand uses the CVT gearbox for both i-DSI and VTEC variants.

The CVT gearbox for the VTEC simulates a 7-speed automatic transmission with Tiptronic style override using paddle shift buttons on the steering wheel itself.

City/Fit Aria: In 2011, Chinese joint venture Guangqi Honda released a badge-engineered version of the fourth-generation City under their new Everus brand, called the S1.

[citation needed] The fifth-generation City (third-generation as a sedan)[4] was unveiled in Bangkok, Thailand in September 2008 followed by launches in India, Pakistan, Malaysia,[11] Indonesia, the Philippines, Singapore and China (Guangzhou Honda) in the following months.

For the third-generation of the City, Honda has given the car a longer front overhang and wheelbase as well as a lower roof than the hatchback to give it more of an ideal sedan proportions compared to its predecessor.

According to a Honda Australia executive, Yasuhide Mizuno, the City would compete with other light sedans such as the Japanese built Toyota Yaris, the Korean-made Holden Barina and the Nissan Tiida.

[20] The diesel version of the City was launched in India in early January 2014, powered by the 1.5-litre Earth Dreams i-DTEC turbodiesel engine.

[citation needed] Honda Atlas (Pakistan) resumed the production of City on May 1, 2012, after it was halted due to supply chain disruption caused by massive flooding in Thailand.

In October 2014, Honda Atlas launched the facelifted City, with new features including new taillights, revamped chrome grille, blinkers on side mirrors, rear window brake light, keyless entry system and new bumpers.

Debuted in India, the sixth-generation City (fourth-generation as a sedan)[4] is Honda's second model to incorporate the new "Exciting H" design which was first seen on the third-generation Fit/Jazz that launched in September 2013.

[4] The new City in its range topping trim features extensive premium equipment and kits, such as touch-panel auto climate control, rear AC vents, a 5-inch LCD display with navigation, Bluetooth audio, a reverse camera, eight speakers, and four power outlets.

[34] The sixth-generation City was unveiled in India on 25 November 2013 and is available with a choice of two engines; a new 1.5-litre Earth Dreams i-DTEC turbodiesel and a refined version of the 1.5-litre i-VTEC petrol.

[43] The City is offered and sold as Honda Grace in Japan starting from December 2014, with both petrol and hybrid versions, and an all-wheel-drive option.

It has an Atkinson cycle DOHC i-VTEC 1.5-litre engine with 110 PS (81 kW; 108 hp) and 134 N⋅m (99 lb⋅ft) of torque, mated to a 7-speed dual clutch transmission (DCT).

While its dimensions have grown to the point that it is slightly larger than the ninth-generation Civic sedan (2011–2016), the City continues to be marketed and priced as a subcompact or B-segment car.

[70] The City Hatchback serves as a replacement to the Fit/Jazz in several emerging markets (except in South Africa, Singapore and Brunei where the Fit/Jazz is sold), and is currently produced in Thailand, Indonesia, Malaysia, and Brazil.

[73] Other aspects of the Phase 2 Eco Car regulation include the fitment of various safety systems such as ABS, EBD, BA and VSA as standard across the range.

Other notable features include 8.0-inch touchscreen audio system with Alexa remote capability and support for Android Auto and Apple CarPlay, 7.0-inch digital instrument cluster display, and sunroof.

[89] The City also gets Honda Sensing which includes safety assist technologies in both and Wireless Charging, while the i-DTEC turbo-diesel engine was discontinued from the lineup due to poor sales.

Like its sedan counterpart, it is equipped with 7-inch semi-digital instrument cluster panel and Honda Sensing safety and driver assist system similar to the e:HEV RS trim.

[citation needed] The City, sold only as a sedan, was launched in Turkey in October 2021, imported from India and coming with the 1.5-litre petrol engine with a CVT transmission.

It utilises the smallest version of Honda's Intelligent Multi-Mode Drive (i-MMD) hybrid system shared with the fourth-generation Fit/Jazz which consist of a 1.5-litre Atkinson cycle DOHC i-VTEC engine and an integrated electric motor acting as a generator and a starter.