OK
Imagine that your parents have given you 8 lakhs to spend on a new car.
Either you can go for a boring i20 which you may even see being driven by a couple of oldies.
Or you may buy an 500 which will help you maintain your uniqueness and add some excitement and WOW factor.
There are still people who value this "UNIQUENESS" and want it without spending too much.
The 500 makes perfect sense for them.
And believe me, there are plenty of such people.
So the 500 may sell in decent numbers.