It's easy to make a $2500 car if 1) your definition of "car" is little more than a souped-up golf cart, 2) you do it in a country with low taxes and cheap labor, 3) you don't have to spend $2000 of every sale on pensions of retired workers, 4) you keep the car itself simple and put all your engineering efforts into making it cheap to manufacture, 5) you don't change models every three years just for the sake of fashion, and 6) you have a will to make such a car -- i.e. customers who want to buy such a thing.
Also, Europeans benefit from small cars because their cities have a lot of teeny European roads. The Chinese, from what I've seen (Shanghai), don't have tiny 400-year-old roads; they bulldoze whole city blocks and rebuild everything new. They have modern American-sized roads, hence American-sized cars. I don't know where India fits in this comparison.
Honey, I Shrunk The Car
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