Also, poor Indians are not very well-paid. I asked an Indian why he didn't own a car despite cars being very inexpensive there. He said that people hardly have the money to buy the motorcycle!
I think that the government is mainly responsible for the high-prices. Say, the tax we pay on a 1.5 million City is 0.5 million! (Not including registration costs.)
The government has better ways to earn money. If it were to stop taxing on car, we'd get the new Corolla XLi in the price of a WagonR.