My V8 engine is powerful but once I change to the second or the third gear, my V8 engine becomes I4...
High horsepower can let you stay at lower gear longer. The 1.6 engine is low on torque. However if its redline is 20000 rpm like F1 (= very high HP), then 1.6 engine would NOT be slow. (You can image that you drive your car on highway with the first gear!!! )
If the engine like Honda loves high rpm, then it would become even better...
That's why some heavily modified Civics are faster than modified GT-Rs!?!