Why would you assume this. Let’s say the average income is half what it is in America, and the safety regulations are more lax. Do they make a car they can sell in America that (almost) no one in China can afford, or do they make a car they can’t sell in America, but a lot of people can afford?
While the price of this car is pretty cheap in dollar terms, it’s pretty expensive if you compare it to their PPP, so the whole argument becomes somewhat moot. That said, there were a number of interesting and very economical cars made or sold in India in the last 10 years that would never pass regulations in Europe or America, for the exact reasons I listed above.