So, if 50 million individual units can potentially be sold, then what will this suddenspike in the number of units on the road affect an already horrible traffic situation? I know that in India, even people with lots of money don't choose to buy a car because of the practicality---where the hell will they park if they want to take their new mini-car to the movies or shopping? Will the infrastructure meet the demand? Maybe somewhat.
Will villagers buy this car given a decent loan term? I suspect "yes".
If Tata can provide a vehicle that small farmers could use to transport their wares, and for the small merchants to move merchandise, and for the postal service, etc etc. I think we have a winner here.
Tata could make loads of money on the interest on the car loans as well as the secondary markets for parts/service, etc.
There really is wealth at the bottom of the pyramid.