Compared to the vehicle it is being marketed to replace, the motorcycle/moped for 3 to 5 people precariously balanced on top of it, it is definitely an advantage. I doubt air conditioning would be an available option, a 600cc engine wouldn't have the power to both run it and propel the vehicle, especially when it is loaded to the gills, as vehicles in that part of the world typically are.
I heard an interview about this car in NPR the other day. They realize the savings by having opened a manufacturing plant in a very backward area of Bengal, & won lots of tax concessions in the process, plus they convinced their suppliers to open plants in the same area, to cut down on their costs + the transportation costs to the main plant.
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