How can anyone sell a new car so cheaply

How can anyone sell a new car so cheaply and make a profit when, in this country, even a basic economy model like the Chevrolet Aveo begins at almost $11,000? Lower labor costs, of course, and Tata's Web site mentions cost-saving measures like an engine that fits under the rear seat, enabling the entire car to be smaller; locating the instrument cluster in the center of the dash so that one dashboard can be used for left- or right-hand drive versions; and obtaining unspecified incentives from local officials to locate the Nano assembly plant in West Bengal. Still, the cheapest car in India now is the Suzuki Maruti 800, which costs about twice as much.