The main market for this car is Japan - the European market is secondary (even though the car is available to order in the UK now, but not yet in Japan) The vast majority of people who travel more than 100km in Japan use the train network rather than drive.
So yes, IG, this will be a City car in Japan, but not marketed as such in Europe.
Honda have done there research and have sized the car and batteries for the usage of the intended market - ie Urban/Suburban dwellers.