"Nano" is not meant to compete with Toyota/Honda/GM. Tata Nano offers an alternative to 2-wheeler owners to own a car. Also, Nano is good candidate to replace India's 3-wheeler auto-rickshaws. India's emission norms are based on euro-emission norms. So they are no as lenient as perceived. Moreover, This car is meant to be used for intra-city transport. The speed here is around 30-50km/hr. At such a speed, it is less likely to have fatal accidents. What must be appreciated is Ratan Tata's ambitious vision and excellent execution by Tata Motors to achieve their goal.