Reading a nice book on the Nano story - but what is pretty interesting is how the Ace was actually, in any ways, the precursor to this amazing vehicle.
When the Tata engineers went out into the market, asking customers what they really wanted, they found out that there was a huge market opportunity between the three wheeler rickshaw and the bigger trucks. Small enterpreneurs in the towns and villages wanted a four wheeler as a status symbol, and were willing to pay more to upgrade from the three wheelers. Besides, the middle option provided them the opportunity to grow, carry their family members safely around, without the inconveniences and expense of the larger 407 and similar trucks.
The Magic, another vehicle I absolutely love from the Tata stable, must have had a similar wonderful customer need behind it - upgrading from the six seater rickshaw!