The seventh-generation City (fifth-generation as a sedan) was unveiled in Bangkok, Thailand, on 25 November 2019 in its sedan form. It shared its platform with the fourth-generation Fit/Jazz. 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.
The hatchback version was launched in November 2020; 26 years after the body style was last used in 1994. Dimensions-wise, the hatchback is 208 mm (8.2 in) shorter than the sedan at 4,345 mm (171.1 in), which means it is close in size compared to the European ninth-generation Civic hatchback. Honda claimed hatchback offers more legroom than the sedan and offers the Ultra Seats carried from the Fit/Jazz and HR-V, allowing for four rear seat arrangements – utility, long, tall and refresh modes. The City Hatchback serves as a replacement to the Fit/Jazz in several emerging markets (except in South Africa where the Fit is sold), and is currently produced in Thailand, Indonesia, Malaysia, and Brazil.
In Thailand, the City is powered by a 1.0-litre VTEC Turbo petrol engine mated to a CVT. The smaller engine and the low emission output makes it the first City to qualify the Eco Car tax incentive. Among the conditions of the tax incentive are Euro 5 compliance, CO2 emissions below 100 g/km, and a fuel consumption not exceeding 4.3 L/100 km (23.25 km/L). The Thailand-spec City has a rated fuel consumption of 4.2 L/100 km (23.8 km/L). 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. It is available in four trim levels: S, V, SV and RS. Sales began in Thailand on 24 December 2019.
The City Hatchback debuted in Thailand on 24 November 2020. The City Hatchback is offered in just three variants, which are S+, SV and RS.
The City e:HEV RS was also launched in the country in the same day. The e:HEV version gets several additional features over the petrol RS, including paddle shift to adjust the regenerative braking intensity, a 7.0-inch instrument cluster display, Honda LaneWatch blind spot camera, rear AC vents, and rear disc brakes which in turn allows for an electric parking brake to be installed. The City Hatchback e:HEV RS was also launched in Thailand on 24 June 2021, with similar features as the sedan version.